Securities and Exchange Board of India (SEBI), the apex regulatory body for securities and commodity market in India, is seeking an agency to implement a ‘data analytics project’ to detect any market manipulations such as insider trading and front running that could arise as a result of technological advancements in the sector.
The regulator is looking to use artificial intelligence (AI), machine learning (ML) and deep learning (DL) to solve complex challenges, such as mammoth amounts of data, for data analytics. The challenges are many since these data sets can be structured or unstructured. However, they have already set up a data lake, a repository of data in its raw format, with an analytics platform to help the agencies scrouge through the data trove.
The regulator, in a notice on Wednesday, invited expressions of interest (EoI) from reputed and reliable solution providers for the implementation of data analytics projects and the building of data models at Sebi. The last date for submitting the bid is July 13.
The chosen agency is expected to build new analytical models using AI and ML technologies, implement analytics projects and add new data sources to increase a model’s capacity, among other things.
Additionally, the agency will support Sebi to create linkages between various entities in the market, set up models for extracting details from Sebi’s documents automatically and predict market manipulations such as insider training and front running.
As per Sebi’s criteria, the agency should be at least 3 years old and have previous experience of working on similar projects with a regulatory body or a banking and financial institution. Further, the agency should be of a good reputation, “it should not be a blacklisted firm due to unsatisfactory performance, breach of instructions, corrupt or fraudulent or any other unethical business practices,” reads the EoI.
“Sebi is also in the process of implementing a project on automation of inspections and surveillance of mutual fund,” Tyagi had said.
Sources: indiaai.gov.in
