SEBI eyes data analytics, new generation technology to boost supervision, identify non-compliance

Continuing its efforts to bolster supervision and identify non-compliance, regulator Sebi plans to deploy data analytics and new generation technologies to deal with various challenges in the market. The watchdog has been taking strict action against erring entities, apart from steps to protect investors and ensure integrity of the market.

Sebi Chairman Ajay Tyagi has said that apart from enhancing investor awareness and improving access to the securities market, the regulator would continue to strengthen market supervision through various steps such as technology solutions being built to achieve the objective of identifying non-compliance and assisting in investigations.

Deterring, effective and timely enforcement actions against errant entities would also be taken to maintain discipline and the overall market integrity. “Going ahead, SEBI endeavors to deploy data analytics and new generation technologies to understand and handle various challenges in the market. “Sebi would encourage adoption and usage of financial technology to further develop and maintain an efficient, fair and transparent securities market ecosystem which also promotes innovation in the securities market,” Tyagi said in his statement in the regulator’s annual report for 2018-19. Besides, steps are being taken to deepen the corporate bonds market, widen the penetration of mutual funds across the country and strengthen the commodity derivatives market.

With various Sebi regulations, Tyagi said access to information has increased, leading to more transparency for informed decision making by investors. Overall governance has become conducive for the protection of investors’ interests and overall market development, he added. In 2018-19, the main thrust of various policy measures were aimed at improving corporate governance, revisiting the procedures followed in the primary market, reviewing the risk management framework for equity derivatives, developing the mutual funds industry and promoting ease of doing business, among others.