Sebi mulls new mechanism for surveillance of debt instruments

NEW DELHI, Dec 14 (PTI): In the wake of growing interest in debt market, capital markets regulator Securities and Exchange Board of India (Sebi) is considering putting in place a new mechanism for surveillance of debt instruments traded on the stock exchanges.

Besides, the markets watchdog also plans to undertake a review of 'derivative alerts' to safeguard the marketplace and investors from any manipulative activities.

According to a senior official, the Sebi has also asked the stock exchanges to issue an advisory on their websites for investors in respect of trading in equity derivatives.

While trading volumes in derivatives market are much higher, this segment is mostly dominated by the institutional investors who typically have a greater risk appetite.

However, a growth in the market is also attracting other investors and there is also a growing risk of manipulative activities in this segment, prompting the regulator to put in place necessary checks and balances, the official said.

The Integrated Surveillance Department of Sebi is therefore considering putting in place a new mechanism for surveillance of debt instruments and conduct a review of the derivative market alerts.

Besides, this department has already taken necessary action for ensuring an advisory on the exchange websites for investors in respect of trading in equity derivatives.
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