UK Sinha, chairman of the Securities and Exchange Board of India, is focusing on prevention. As a regulator, he knows he has to match up with, and even get ahead of, the smarter ones playing in the stock market.
"So, our task is not over. We will continue to upgrade our system," he says in an interview in Business Line.
Towards this end, he has asked companies to provide details of likely insiders.He has also put in place a Data Warehousing and Business Intelligence System, where "every millisecond, people (there) are getting information".
"We are getting hundreds of alerts every day which we were not getting earlier," he says. The banning of 19 entities after a probe into the recent mid-cap stocks was a result of such alerts, he says.
As far as insider trading is concerned, the proposed system, which he hopes to put in place in 3-6 weeks, has the potential to be a preventive measure.
The plan is to feed the list of the "insiders" provided by companies into the Sebi's surveillance system. "So if any buy or sell of the same company's shares or allied shares are taking place, I will get an automatic alert," he says.
Looks like investors can expect more action from a regulator who has his tasks cut out.
Read the full interview here.