Let me start this blog with the introduction of SEBI which stands for Stock and Exchange Board of India is a regulatory body for the stock market of India. It was established in 1992, under section 3 of SEBI Act. SEBI has power to regulate all market intermediaries and also to penalize them in case of fraudulent activities and unfair trade practices. SEBI has the authority to regulate and develop the stock market.
My purpose of starting this article with the intro of SEBI is to make you aware of the concept of SEBI first (in case you didn’t know) then move on further to talk that why it’s in news. In recent news, it was stated that SEBI is using some technologies for social media surveillance. Do you know about the technologies and why SEBI is using them? If you aren’t aware of this then you’re at the right place. This blog will provide you with every possible detail on SEBI using technologies for social media.
It’s time to dig deeper into the topic now.
SEBI plans to invest Rs.500 Crore in technologies for social media surveillance
From the day of establishment till now SEBI has been working to enhance its capabilities in advanced analytics, surveillance systems, cloud infrastructure and security. The major purpose of SEBI is to check on malpractices and protect the interests of investors.
In a recent event at Singapore, Ajay Tyagi, Chairman of SEBI said, “Technology is a game-changer in financial services as it can not only provide faster and better services to the consumers, it can also be a catalyst in improving the ease of doing business”. He also said that SEBI is planning to spend Rs.500 crore in the next five years on upgrading and building new IT capabilities.
Moreover, this investment will encourage technologies innovation in securities markets, which Tyagi states that organization’s methodology has consistently been to empower and improve technology capacity-building and simultaneously to know about the potential danger related to such capabilities.
What’s the purpose of SEBI behind building social media surveillance?
At the National University of Singapore, SEBI Chairman Ajay Tyagi also announced that the company is also working on social media surveillance, which will help marketers to look for market manipulation information on various platforms.
The reason behind launching the social media surveillance is that many times SEBI found that price-sensitive details had been leaked on social media platforms like WhatsApp before a significant corporate announcement.
As reported by SEBI, market manipulation is rampant in India, and social media analytics led into IMSS (integrated market surveillance system) which will help recognize insider trading patterns. Here IMSS collects information on suspicious market activities through many sources, including its network systems at stock exchange and depositors. The surveillance will help marketers know if any suspicious illegal activity or market manipulation causing increased volatility or price dumps.
SEBI incorporating AI & ML technologies for social media surveillance
Folks, SEBI is stepping forward to launch its technologies for social media surveillance. These technologies are Machine Learning (ML), Deep Learning (DL), and Artificial Intelligence (AI).
Tyagi also said that “Newly emerging technologies like artificial intelligence, machine learning, and deep learning, etc. are being used in Indian capital markets in areas like Robo advisory services, surveillance through social media analytics, IT security, etc”. “the Indian securities market has always been at the forefront in embracing technological advancement keeping pace with the developed securities market in the world”, he added.
With the introduction of AI and ML technologies, SEBI will conduct a survey and will create an inventory of the ML & AI landscape in the Indian Financial markets to gain in-depth understanding of the adoption of such technologies in the markets. Earlier, SEBI had implemented Natural Language Processing (NLP), sentiment analysis or text mining tools that gather insights from unstructured data.
Summing it up!
There is no doubt that social media has become major platforms for spreading fake news and stealing data. Many marketers take advantage of this platform and manipulate their customers by giving them fake information and showing ads related to their data.
To tackle this issue of money market, SEBI is working on its new project that is surveillance of social media with the help of Artificial Intelligence, Deep learning, and Machine Learning technologies. Once these technologies are used in social media, investors, marketers, and customers will get huge benefit from it.
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