The Exchange has set up Surveillance Department to keep close watch on price movements of scrips, detect market abuses like price rigging, monitor abnormal prices and volumes which are not consistent with normal trading pattern etc. The main objectives of the department are to provide a free and fair market, to arrest unsystematic risk from entering into the system and to manage risks. The surveillance function at the exchange has assumed greater importance in the last few years. SEBI has directed the stock exchanges to setup a separate surveillance department with staff exclusively assigned for this function.
It also offers services like :-
· Keeping a close watch on the price movement of scrips.
· Detect market manipulations like price rigging.
· Monitor abnormal changes in prices and volumes witch are not consistent with the normal trading pattern.
· Monitor the member brokers positions to insure that defaults do not occur.
The department conducts in-depth investigation based on preliminary enquires made into trading of the scrip as also at the instance of SEBI. Conducting Investigations involves the following stages :-.
· Identification of scrips to the investigator based on the alerts thrown by the online system and offline reports.
· Identification of Members from home the client details have to be called for .
· Preparation of company profile including Corporate News and Financial Results.
· Compilation of client details.
· Preparation of reports.
· In case irregularities found, necessary actions are initiated.