Bse On-Line Surveillance System Launch By July

The Bombay Stock Exchange (BSE) is planning to introduce BSE On-line Surveillance System (BOSS) by July. The system is likely to be introduced ahead of the Securities and Exchange Board of India (Sebi) plan to implement stockwatch at all exchanges.

BSE executive director R C Mathur said that the on-line surveillance system will be implemented within another one-and-half months.

The system will be entirely indigenous, and will incorporate all the salient features of the surveillance system existing at the New York Stock Exchange and the Taiwan and Hong Kong stock exchanges.

A team of BSE officials had recently toured the Far-East stock exchanges to understand the depository systems, and understand the surveillance systems in Taiwan and Hong Kong stock exchanges.

 

"The team has studied the performance of the system so far and would shortly present its recommendations. Suggestions given by an exchange committee set up for the purpose and other officials of the exchange will be incorporated in the final draft which will be put forward to the governing board. It will be later submitted to Sebi for approval", a senior BSE source said.

He indicated that parameters designed for BOSS will be more stringent than those prescribed by Sebi. "In the international markets, the bourse is expected to monitor stock movements carefully. In NYSE, for example, if the SEC specifies a price band for fluctuation in a stock price, the exchange will impose a tighter price band than that prescribed for bourses.

BSE intends to set its own parameters for stockwatch which would be stiffer than those imposed by Sebi," he said.

The BSE system will be designed within the parameters that would be worked out by the committee for all exchanges. The official says, The system will be designed in such a way that if a particular stock witnesses an abnormal movement in its price or traded volume on a particular day, it will be thrown up on the screen.''

Sebi has broadly prescribed three parameters for an alert system in the stock watch. Scrip alert, member broker alert and trade alert will form a basis for generating an alert mechanism. When triggered, the system would be capable of generating a complete audit trail for all kinds of deals done by the brokers. These would include negotiated, normal, institutional and such other deals.