The committee will suggest measures for improving surveillance of the markets and strengthen rules for algorithm trades, among other norms.
Why needed?
The securities market environment is dynamic, so there is need for periodic review of regulations and surveillance mechanisms in order to effectively discharge the objectives of SEBI.
Terms and Reference of Committee:
- The committee will suggest measures for improvement in PFTUP (Prohibition of Fraudulent and Unfair Trade Practices) regulations, PIT (Prohibition of Insider Trading) norms and norms mainly related to ‘trading plans’ and handling of ‘unpublished price sensitive information’ during takeovers.
- It 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. It will suggest evidentiary issues in anti-fraud enforcement. It will be also responsible for recommending steps to align insider trading regulations with Companies Act provisions.