Market regulator SEBI on Tuesday set up a committee on ‘fair market conduct' which will suggest measures for improving surveillance of the markets and strengthen rules for algo trades, among other norms.
The panel, under the chairmanship of former Law Secretary TK Viswanathan, will suggest measures for improvement in PIT (Prohibition of Insider Trading) norms, PFTUP (Prohibition of Fraudulent and Unfair Trade Practices) regulations and mainly related to ‘trading plans' and handling of ‘unpublished price sensitive information' during takeovers.
It will also be responsible for recommending steps to align insider trading regulations with provisions of the Companies Act.
The committee will suggest short-term and medium-term measures for improved surveillance of the markets as well as issues of high frequency trades, harnessing of technology and analytics in surveillance.SEBI Statement
Besides, the committee will suggest evidentiary issues in anti-fraud enforcement.
The panel headed by Viswanathan, who was also former Secretary General in the Lok Sabha, will submit its report in the next four months.
The other members of the committee are representatives of law firms, mutual funds, retail and institutional brokers, forensic auditing firms, foreign portfolio investors, stock exchanges, chambers of commerce, data analytics companies and the markets regulator.
SEBI noted that the securities market environment “being dynamic, periodic review of regulations and surveillance mechanisms is of utmost importance in order to effectively discharge the objectives of SEBI.”
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