The Securities and Exchange Commission (SEC) has installed the electronic surveillance system which they bought from Millennium Information Technology (MIT) last October SEC officials said.
“It was being tested during the last few months and we installed it on Wednesday,” Malik Cader, Deputy Director General SEC told the Business Times.
The SEC last year signed an agreement with MIT to procure a new electronic surveillance system. Mr. Cader said this new system has replaced the earlier manual system that the SEC had.
He said the new system will detect market manipulation and insider dealing in a more effective manner. “This will enhance the SEC’s ability to monitor the market in a much more efficient and also an effective manner,” he said. He said it is a Rs. 20 million investment, adding that this system has the capacity to identify unusual trading patterns, such as chronological connections with customer orders. He said that this IT-driven system has replaced the manual checking system that was earlier in place to monitor market manipulation and insider dealing.
He added that this system will help the SEC to identify any sign of insider trading and market abuse.