Market Survelance system is automated and agnostic; Alerts Form Basis for Investigations: Sebi’s Kamlesh Varshney – CNBC TV18

The Securities and Exchange Board of India (Sebi) have cleared that its market surveillance system is automated and agnostic, agnostic, Issuing Alerts Whneever Violation Involved.

Kamlesh Chandra Varshney, Whole Time Member at Sebi, Told CNBC-TV18 that the alerts generated by the system form the basis of deapeer examinations and investigations. “We generally duan’t comment on individual investment, but … Whatever Investigation or Survelance we do, it is the kind of system that we have inside our surveillance. Wheneveer there is Out as an alert, and then further exam or investigation takes place.

Addressing Concerns about High-Frequency Trading Scrutiny, Particularly Around Names Like Jane Street and Millennium, Varshney Stressed that Sebi Continuouslyly Monitors all potentors all potentors all potenators all potent. “So, if there is anybody else as well doing that violation, that will also also be under examination. But what is the result of that examination, we probally cannot share,” He Said.

On the derivatives front, sebi has set up a specialized team along with the National Stock Exchange (NSE) to Enhance F & O Market Surveillance. “We are strengthening our surveillance, nse is strengthing

He added that sebi is actively hiring phd students to support advanced surveillance work, aiming to detect and address violations more effectively.

Regarding the timing of past actions, varshney defended sebi’s processes. “Every exam within sebi takes time … it is very easy to say somebody is doing a violation, but that is not enough for us to act. We have to go to go to go to Be Sustained in a court of law. A lot of work is required to be done;

Varshney also highlighted the complexity of f & o market manipulations, include sophisticated strategies such as such as gamma, theta, and vega manipulation, underscoring the Need for SPECILISED To monitor and investate these trades.

Below is the excerpt of the interview.

Q: I want to start with what is uppermost in the minds of media and the market, Jane Street? I mean, is that only surveillance, or one would assume the word millennium also planned up in the papers because of the fight they had. Are there other High-Frequency Trading Guys Who All Are Surveying?

Varshney: We generally given comment on individual investment, but keeping that individual’s name aside, wheatever investigation or surveillance we do, it is the kind of system that will get your Survelance. Whenever there is a violation, it comes out as an alert, and then further exam or investigation takes place. That alert is agnostic of any individual. So, if one person is doing a violation, that alert will come; If somebody else is doing that violation, that alert will come against. So, if there is anybody else as well doing that violation, that will also also be under examination. But what is the result of that examination, we probally cannot share.

On this specific F & o, we have constituted a special team inside the surveillance department, along with nse. So, we are strengthening our surveillance, nse is strengthening its own surveillance, and we are working in coordination with each other.

We are actually hiring phd students to help us in our surveillance work. And we hope that if there is any further Violation than what we have noticed, all that would be examined and brough to book.

Q: This is very important -ha there is a special committee within bot sebi and nse to look at surveillance more closely. But this Committee Came Later, because if this committee was there, you would have causedt jane street even earlier.

Varshney: no. Even in the jane street case, both sebi and nse worked toge. So, it’s not that they did not work togeether. This is now a specialized focus cell with expertise. BeCause we do undersrstand that we need special expertise to understand some of the manipulations. See, there is one manipulation that has been noticed, which is gamma manipulation. There could be, i’m not saying it is there, but there could be vegas, there are thetas. So, there are a lot of things that happy in the f & o market, and there are special people who undress that particular expertise.

Q: My only point was, this jane street-millennium thing came in the papers. So, was sebi late? Did the surveillance catch it a little late?

Varshney: no, not at all. I don’t think so. What Haappens is that every examineation with sebi takes time, and not just just sebi alone, but any enforcement agency. So, it is very easy to say somebody is doing a violation, but that is not enough for us to act. We have to go to the root of that particular Violation and Establish it has been it has to be sustained in a court of law. It is not that sebi has passed an order and that is the final word. A lot of work is required to be done; Therefore, it takes time, but it gets don.

Watch the video for more