As Indian markets attain a larger global character, the Securities and Exchange Board of India is strengthening cooperation with its global peers for exchange of information in key cases and to implement global standards in its regulatory functions.
A full-fledged ‘International Affairs’ team has been put in place at the capital markets regulatory body, while SEBI is also working on a ‘comprehensive study’ to understand the surveillance mechanism of regulators in developed markets like the US, UK, Australia and Hong Kong, a senior official said.
The study would include analysis of foreign regulators’ “surveillance infrastructure and techniques to decipher patterns in trading, formation of associations between entities and gathering of market intelligence, including linkage of price volume pattern to market information’’.
Further, the best practices followed in developed markets relating to surveillance of algorithmic and high-frequency trading, which use latest technology to execute trades in milli-seconds, would also be looked into, the official added.
SEBI is already a key member of international standard setting bodies and global forums, including the IOSCO (International Organisation of Securities Commissions), a global body of market regulators from across the world.
Office of International Affairs
The Office of International Affairs (OIA) at SEBI would act as a central facilitation cell for overseas entities having regulatory issues and concerns relating to Indian securities market.
In appropriate cases, OIA will seek to flag and coordinate such issues with relevant departments within SEBI. Similarly, securities market participants from India may request OIA for regulatory assistance.
In appropriate cases, OIA may coordinate with overseas regulators with a view to flag such issues and concerns. The capital market regulator has also beefed up its framework for providing technical assistance to foreign regulators.
In the past, SEBI has shared with foreign peers its expertise on various aspects of securities market regulations, including in mutual funds, ETFs, depositories, clearing and settlement mechanism, market surveillance and enforcement, information technology, data warehousing and business intelligence.
OIA is also tasked with keeping SEBI abreast of global developments, so that necessary steps can be taken by it while introducing and implementing regulatory measures.
In pursuit of its regulatory objectives, the regulator also engages with several international organisations, foreign regulators and law enforcement agencies.
Among other global forums, SEBI is one of the three members of the Financial Stability Board (FSB) from India which coordinates at the international level the work of national financial authorities and international standard setting bodies.