The Telegraph
Monday , April 14 , 2014
CIMA Gallary

Sebi plans risk profile of players

New Delhi, April 13 (PTI): Sebi plans to set up a mechanism for “risk profiling” of listed companies and various market intermediaries, including stock brokers, to help it better regulate the marketplace and strengthen its surveillance system.

The market watchdog is also working on a formalised risk-based supervisory approach for various market intermediaries, for which it has set up a “risk-based supervision task force” with an objective to understand the supervision needs of each class of entities regulated by it.

The task force will help to identify and define various risk metrics, both quantitative and qualitative, and also explore and lay down the methodology for assigning ratings of various risk metrics, a senior official said.

The task force will be submitting its report soon, and thereafter, the implementation of the recommendations will be taken up across various classes of intermediaries.

As part of its focus areas for the current fiscal, the Securities and Exchange Board of India (Sebi) plans to considerably beef up its market surveillance capabilities.

It will adopt a systemic approach to establish a mechanism for risk profiling of companies and stock brokers, among others, to understand the associated risks.

While special focus will be on capacity building for effective surveillance, particularly of derivatives markets, the skill sets will be enhanced this year for using analytical and statistical tools to facilitate effective supervision.