"We are discussing this with bourses and this is the next stage of coordination between exchanges. We have been pushing them for working together on issues of surveillance because there are cases of multiple listings and multiple memberships which can be addressed jointly by exchanges. One exchange could be the nodal exchange and others could give valuable inputs when a case of manipulation is detected. As of now, Sebi ensures that this coordination is done but if exchanges are to develop as self regulatory organisations, they would have to do this on their own," said Sebi senior executive director in charge of surveillance and investigation, LK Shighvi.
The issue is expected to be discussed at a forthcoming meeting of stock exchanges under the aegis of the inter-exchange surveillance group. Exchanges have been called on August 9 for discussing various issues concernm ing the markets. 'There was a time when exchanges did not even share basic information with each other. Now we have reached a stage where we are discussing with them on taking joint action in cases of manipullation. We have several exchanges and each follows its own system of monitoring while we monitor at our level. But, there is a need for greater coordination," said Singhvi.
"It is irnportary'z that investovs, do not just jwrp into the markets without being cautious. There is a much greater capability now to tackle manipulation However, we still need to work on developing a culture of surveillance and ccmpliance at exchanges. Automation of systems can be the catalyst for bringing in this culture," saick Singhvi. "A key change that is going to take place ire surveillance, is the setting tip of databases with exchanges. We have already asked them to set tip databases on issuers, members and trading patterns. The data, apart from being used for surveillance, would also be used by investors," said Singhvi.
