04/11/2012
Promising hawk-eye vigil on those trying to make unlawful gains through manipulations, market watchdog Sebi has said it has developed a surveillance system that even foreign regulators are looking to emulate.
"From the system that was there earlier and the system and processes we have got right now, there is a world of a difference... In fact, my impression is that many of the countries do not have such kind of systems in place," Sebi Chairman U K Sinha said.
"Some of the regulators outside India are looking at our systems. When I attend IOSCO meetings and exchange data, we find that our system is quite advanced," Sinha told PTI in an interview here.
The International Organization of Securities Commissions (IOSCO) is a global body of securities and futures market regulators across the world, of which India is a key member.
The other major members of IOSCO include market regulators in the US, UK, Japan, Switzerland, Germany, France and China.
It acts as a platform for developing, implementing and promoting adherence to internationally recognised standards of regulation, oversight and enforcement in investors' interest.
IOSCO members exchange information to strengthen their supervision and enforcement systems.
"I don't want to claim that we have the best system in the world, because that will be the wrong way to say it, but still our systems are very robust and that is why many of the outside regulators at looking at our system (to emulate it)," Sinha added.
Sebi is also providing training to its officers at the best places in India and abroad, he said, adding, "So, now they are better prepared to handle the cases."
The capacity that Sebi have been able to build about analysis of the data in a multifarious environment is tremendous, Sinha said.
"At the same time, I will say that we are still not satisfied with it and continue to upgrade it... Because, the people we are dealing with, they are also very smart and they are very resourceful and can always try to improve their system compared to our system," he added.
Therefore, Sebi needs to continuously remain vigilant and improve its systems every passing day to keep market manipulators at bay, he said.
Asked about the perception that enforcement actions get delayed against those found guilty of breaching Indian capital markets regulations, Sinha said that the impression about people getting away or the enforcement actions getting delayed for years "are all matters of the past".
He said: "When I say with such an emphasis that such things will not happen, you may ask how am I so sure. I am sure about this because we are making changes in our systems. One of this is in our surveillance system."
