Mumbai, Aug 12 (IANS) Markets regulator, the Securities and Exchange Board of India (SEBI), on Tuesday revealed that it conducted search and seizure operations involving 89 entities at 71 locations covering 18 cities across the country during 2024-25.
The inspections were launched on 24 mutual funds and their Registrar and Transfer Agents (RTAs), plus 13 portfolio managers, according to the SEBI’s Annual Report.
The off-site monitoring of all mutual funds was powered by algorithm-based alert systems.
The SEBI’s inspection drive included 312 stock brokers, 90 depository participants, 51 merchant bankers, 56 RTAs, 207 investment advisers, 149 research analysts, eight credit rating agencies, 11 debenture trustees, seven designated depository participants, seven custodians, and three KYC registration agencies.
To strengthen its surveillance and investigation capabilities, the SEBI set up a lab in 2023- 24 with cutting-edge technologies.
During 2024-25, it has added multiple new data sources and new data analytics tools in the lab.
“These tools have significantly streamlined data analysis, reduced time and manual effort, and improved accuracy in identifying connections among entities involved in violation of securities market laws,” according to the SEBI.
In order to combat market abuse, a Market Intelligence portal has been developed for market participants to provide market intelligence inputs pertaining to market abuse. The portal has been operational since May 2024.
An Enhanced Surveillance Measures framework has been extended to stocks listed on the mainboard and SME segments with a market capitalisation of less than Rs 1,000 crore. Addressing the abnormal price movement in PSU stocks, the major surveillance frameworks have been extended to PSU stocks.
“To prevent the misuse of client funds by intermediaries, the direct pay-out of securities to the client’s demat account was made mandatory. Framework to facilitate safer participation of retail investors in algorithmic trading through brokers and mandating qualified stock brokers to offer ASBA-like facility in secondary markets were taken to ensure that retail investors are protected,” SEBI Chairperson Tuhin Kanta Pandey said.
Regulated entities have been mandated to disassociate from unregulated entities, which provide advice/recommendations/unverified claims on return and performance. Cautionary advisories were issued on transacting on unauthorised virtual trading platforms, unregistered online platforms offering unlisted debt securities, and on investing in securities listed on the SME platform, he said in his message in the Annual Report.
“SEBI’s regulatory outlook remains steadfast — anchored in trust, guided by resolve to protect investors and driven by the goal to support India’s vision 2047. We will continue to pursue a proactive and forward-looking regulatory approach, guided by our core principles of trust, transparency, teamwork and technology,” Pandey said.
–IANS
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