SEBI plans to deploy technology to beef up surveillance activities

• Eyeing a major technological leap in its surveillance and investigation functions markets watchdog Sebi plans to build a private data storage cloud, automate its inspection of brokers and make greater use of data analytics.

• Besides, the regulator is looking to put in place new and advanced software tools to help in its monitoring of mutual funds and for the sharing of information with other regulators.

• To provide these services, Sebi has invited expression of interests (EoIs) from companies for enhancement of analytical capabilities and setting up of private cloud to provide infrastructure, storage and computing capacity to different 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 the analytics projects such as (but not limited to) monitoring of mutual funds and automation of inspection of brokers,” the Securities and Exchange Board of India (Sebi) noted.

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

• Also, 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by listed companies so as to reduce the element of uncertainty in the market and to dis-incentivise misuse of unpublished price sensitive information by insiders.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 an expert in the securities market. With regard to eligibility for cloud computing, Sebi said the applicant should have been in operation for at least 3 years, should have been in private cloud implementation and its operational management for minimum 3 years and should have the annual average turnover of ₹100 crore in each of the last three fiscals.

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