SEBI links commodity trade data with its surveillance systems

For better surveillance of commodities derivatives market, regulator SEBI has integrated trading data flow from various commodity exchanges to its own integrated surveillance and intelligence systems. Following merger of the erstwhile commodity market regulator FMC with it earlier this year, the Securities and Exchange Board of India (Sebi) has become the unified regulator for the entire securities market.

Suspicion of relatively larger-scale manipulations in commodity markets was one of the key issues that eventually triggered the merger. In order to beef up its regulatory framework for the commodities markets and for more effective checks on any possible manipulations, Sebi has also formed two divisions in its Integrated Surveillance Department (ISD), which have been adequately manned for effective surveillance and monitoring of the commodity derivatives market.

Data acquisition equipment have been installed and connectivity was established with major national commodity derivatives exchanges — NCDEX and MCX — thereby integrating trading data with IMSS (Integrated Market Surveillance System) and DWBIS (Data Warehousing and Business Intelligence System) surveillance systems of SEBI.

Data integration has been facilitated in generation of commodity market reports and alerts in DWBIS and IMSS systems. Data from NMCE and regional exchanges are also being received in electronic form through e-mails on a daily basis. The integration of data in the DWBIS/IMSS system for NMCE, the third national exchange, is in process and likely to be completed shortly, as per the memorandum.

UK Sinha is the present Chairman of SEBI

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