SEBI to revamp surveillance system


SEBI, which has been using the Integrated Market Surveillance System since December 2006 for market surveillance and identifying the suspicious transactions, has now decided to further upgrade the IT infrastructure of the system

Mumbai: The capital market watchdog Securities and Exchange Board of India (SEBI) is planning a major upgradation of its key surveillance system through which it monitors data from stock exchange and depositories for identifying the manipulation activities, reports PTI.

The move will help the regulator in its efforts towards a better, continuous monitoring of manipulation attempts in the stock market and analysis of daily transaction data.

SEBI, which has been using the Integrated Market Surveillance System (IMSS) since December 2006 for market surveillance purposes and identifying the suspicious transactions, has now decided to further upgrade the IT infrastructure of the system.

The regulator is looking to add additional security and accessibility features to the system for a faster and more secure monitoring of the market.

A senior official said that the IMSS system is very useful in situations like the one being witnessed currently, when volatility is on a very high level and the attention is mostly focussed on the major market-moving developments.

The market manipulators tend to be more active in these situations, thinking that the oversight machinery would be mostly focussed on monitoring issues like risk-management systems and proper settlement of payment obligations.

However, the IMSS keeps working on an auto-pilot like basis and an upgraded system would further help in the surveillance activities of the regulator, official added.

SEBI is looking to upgrade the IMSS systems at its main data centre, as also at the three stock exchanges (BSE, NSE and MCX-SX) and the two depositories NSDL and CDSL.

The system collects transaction and master data from the stock exchanges and two depositories on a daily basis to generate alerts for predefined market manipulation scenarios.

It also provides data analysis and benchmarking tools, which are used in various policy decisions of SEBI.

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Return of entry load boosts morale of MF industry

The number of active IFAs more than halved to 20,000 from at least 50,000 in August 2009, when SEBI scrapped entry-load that rattled the then MF industry. Reliance Capital AMC CEO Sundeep Sikka said, “We are sure that new investors will start coming back if distributors are incentivised to reach out to new customers, especially in smaller towns”

Mumbai: The Securities and Exchange Board of India’s (SEBI) recent decision to allow one-time transaction fee on mutual fund schemes augurs well for the Rs7.43 lakh-crore asset management industry which is grappling with the sagging fund inflows after entry-load was scrapped in 2009, reports PTI.

“Advisory fee along with a transaction fee of Rs100-Rs150 is very positive move. This would at least ensure that the distributor is not incurring losses. The very fact that SEBI has taken care of the transaction fee itself is good enough for the moment. I am very excited as the step is in the right direction. This move will especially benefit the agents,” Reliance Capital Asset Management CEO Sundeep Sikka told PTI.

Edelweiss Asset Management CEO Vikaas Sachdeva, however, was guarded in his reply over the move.

“I foresee this as a precursor of much better things to come. The initiative will find its feet only over a period of time,” he said, adding that an initiative like this reflects SEBI’s openness to work with the industry to sort out issues dragging growth, one step at a time.

Mr Sikka is more optimistic. “We are sure that new investors will start coming back if distributors are incentivised to reach out to new customers, especially in smaller towns. This is a win-win situation for everyone. The online channel will pick up and sales of systematic investment plans (SIPs) will definitely go up further,” he said.

The number of active independent financial advisors (IFAs) more than halved to 20,000 from at least 50,000 in August 2009, when the markets watchdog scrapped entry-load that rattled the then vibrant industry.

Since August 2009, when SEBI banned entry load, the domestic mutual fund (MF) industry has been bleeding. According to the industry association Association of Mutual Funds in India (AMFI), June saw an outflow ofRs 66,442 crore from the industry, a steep jump from Rs48,850 crore that flowed out of the industry the previous month.

“I am a great advocate and believe that the potential of this industry for transforming the economy of remote corner of the country,” SEBI chairman UK Sinha had said.

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Gold climbs to new high of Rs 24,770 on firm global cues

Sentiments remained bullish as gold climbed in global markets following turmoil in financial markets on concern that the US economic recovery faltering, boosting the demand for the metal as a protection of wealth

New Delhi: Gold prices zoomed to yet another record of Rs24,770 per 10 grams by adding Rs420 in the national capital today on frantic buying by stockists and investors, driven by a firming trend overseas, reports PTI.

On the other hand silver held steady at Rs 58,600 per kg on reduced offtake at prevailing high levels.

Sentiments remained bullish as gold climbed $14.60 $USD 1,663.40 an ounce in global markets following turmoil in financial markets on concern that the US economic recovery faltering and the European sovereign-debt concern, boosting the demand for the metal as a protection of wealth.

Besides, emergence of buying by retailers for the ongoing festival season amid shifting of investor's fund from melting equities to surging bullion further influenced the market.

On the domestic front, gold of 99.9% and 99.5% purity jumped by Rs420 each to an all-time high of Rs24,770 and Rs24,650 per 10 grams, respectively.

Sovereigns followed suit and shot up by Rs300 to a new peak of Rs19,600 per piece of eight grams.

Meanwhile, silver ready held steady at Rs58,600 per kg, while weekly-based delivery fell by Rs420 to Rs58,375 per kg on profit-booking by speculators.

Silver coins remained in demand due to the festive season and gained Rs500 to Rs64,000 for buying and Rs64,500 for selling of 10 pieces.

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