New Delhi: The Securities and Exchange Board of India (SEBI) is acquiring capabilities to analyse social media posts and intensify its use of advanced technology tools to curb manipulations, its Chairman Ajay Tyagi announced on Thursday. Also Read - More Sebi Relaxations: Top 100 Firms Allowed to Delay AGM Amid Coronavirus Crisis
SEBI has off-late increased its social media surveillance due to an increase in established links between suspects of insider trading. Also Read - Coronavirus Outbreak: India’s First AI Summit, Scheduled For October, Postponed
Speaking at the National Institute of Securities Markets at Patalganga near Mumbai, Tyagi said, “Social media platforms are increasingly being used by manipulators for market manipulation… Catching malpractices in the market using the standard tools that analyse only structured data of price and volume is increasingly getting difficult.” Also Read - Amid COVID-19, SEBI Relaxes Compliance Norms For Listed Companies
As a result, he added, SEBI has planned a new method that involves creating a “data lake” project to augment analytical capabilities. The Board will now use advanced technology tools such as Artificial Intelligence, Big data Analytics and Natural Language Processing tools to spot and curb market manipulations.
Artificial Intelligence and Machine Learning have increasingly paved its way bringing a paradigm shift in the securities market landscape. AI tools are being deployed in fund management, trading, supervision and surveillance functions in the capital markets, Tyagi noted.
“We want to acquire technology and unstructured data analysis because the structured data analysis is not helping much, manipulators use all sort of things,” the Chairman said.
SEBI had already passed an order in December after an insider trading case pertaining to Fidelity Group connected two entities to a profile on online matrimonial site – jainshubhbandhan.com. The regulator also sent show-cause notices to 10 entities who allegedly leaked financial information of listed companies on Whatsapp groups ahead of it being made public.