A unit comprised of 360-degree cameras is attached to the top of a NavInfo Co. vehicle used for data collection in Beijing, China. (Photographer: Giulia Marchi/Bloomberg)

SEBI Plans To Deploy Technology To Beef Up Surveillance Activities

The market regulator is planning to build a private data storage cloud, automate inspection of brokers and make greater use of data analytics to beef up its surveillance and investigation functions.

The Securities and Exchange Board of India is also looking to put in place new and advanced software tools to help monitor mutual funds and share information with other regulators.

To provide these services, SEBI has invited expression of interests from companies for enhancement of analytical capabilities and setting up of private cloud to provide infrastructure, storage and computing capacity to upcoming projects.

The private cloud on the regulator’s premises will also ensure continuity of operations and quick recovery during disasters and unplanned events that may adversely affect operational expectations.

The interested company will be responsible for designing, implementing and supporting a big data solution with analytical capabilities.

“It will also involve software development activities for analytics projects such as (but not limited to) monitoring of mutual funds and automation of inspection of brokers,” SEBI said.

Also read: SEBI Plans To Lower Mutual Fund Expenses

The regulator in its annual report for 2017-18 also said it intends to deploy data analytics and new generation technologies to understand and handle challenges arising out of technological advancements in the markets.

SEBI plans to introduce measures to address the issue of major announcements by listed companies so as to reduce the element of uncertainty in the market and to dis-incentivise misuse of unpublished price sensitive information by insiders.

Spelling out the eligibility criteria for companies for software development services in data analytics space, the regulator said the applicant should be operating in the field of software development for at least three years and should have executed at least four projects for building analytical capabilities for major clients preferably in the financial sector.

Besides, the company should have more than 50 software professionals on its payrolls with expert in the securities market.

Also read: Three Casualties Of A Recent SEBI Diktat: FPIs, NRIs And Indian Investment Managers