Capital market regulator Securities and Exchange Board of India (Sebi) has proposed to put in place a business intelligence gathering mechanism with an aim to enhance its surveillance and protect investors' interest.
"Surveillance is a vital link in the chain of activities performed by the regulator to protect investors and develop the markets," Sebi said.
The regulator plans to put in place a Data Warehousing and Business Intelligence System (DWBIS) to increase effectiveness of its surveillance mechanism at a cost of about Rs 18 crores this fiscal.
DWBIS is expected to generate reports that will better serve Sebi to identify, detect and investigate aberrations and market abuses that undermine market integrity, it said.
In 2011-12, the Sebi would have a special focus on investor awareness and education, surveillance of markets and building HR capability of Sebi as well as the market.
It said that recent experience and trends in the type of investigation cases undertaken indicate that technology and newer methods are being used by violators of securities' law while operating in the market.
To meet these challenges and to carry out investigations more effectively, the regulator plans to use latest technology software tools and utilising the services of professional firms.
There are also plans to set up an investigation laboratory to be used as an incubation room for innovation in investigative methods.
Besides, a provision of Rs 10 crores has been made to develop and regulate the profession of investment advisors through a self regulatory organisation (SRO).
As per the budget estimates, the total income of Sebi in 2011-12 is pegged at about Rs 337.06 crores. The major sources of the revenue income are from fees from intermediaries (Rs 200.37 crores) and income from investment (at Rs 128.7 crores).
Total revenue expenditure during the fiscal is estimated at about Rs 160.56 crores.