The Securities and Exchange Board of India (SEBI) on June 06, 2024, issued a circular regarding the Framework of “Financial Disincentives for Surveillance Related Lapses” at Market Infrastructure Institutions.
The general objective of surveillance by MIIs is thus to monitor the market to detect and deter manipulation or abusive trading that affects the integrity of the market and to provide information that supports the Regulator’s enforcement actions. In this backdrop, market surveillance by MIIs may be said to include, but not limited to the following broad activities as may be applicable from time to time:
• Monitoring the day-to-day activities in the markets including trading/margining/settlement/Demat transactions/ holdings;
• Monitoring the conduct of market intermediaries through generation and processing of alerts, seeking trading rationale, carrying out snap analysis /preliminary examination and if required, detailed analysis/examination and timely submission of Report to SEBI.
• Reporting of abnormal/suspicious activities as per the framework that is to be communicated by SEBI.
• Promptly implementing the decisions taken in the surveillance meetings.
• Endeavouring to take pre-emptive surveillance measures as per any framework that may be communicated by SEBI.
The Framework of Financial Disincentives for Surveillance Related Lapses at MIIs are as stated:
• Surveillance Related Lapses
• Amount of Financial Disincentives
• Procedure upon identification of SRL
• Disclosure
• Applicability
Kindly find the detailed framework attached to the document below.
[Circular No. SEBI/HO/ISD/ISD-PoD-1/P/CIR/2024/73]
