Sebi on the lookout for unusual movements

The Securities and Exchange Board of India is keeping a close watch on the movements in the equity markets and keeping tabs on unusual buying and selling patterns in individual scrips.

A top official in the surveillance and investigation department of the market regulator told Business Standard: "We do not want to be caught unawares in case there is anything happening."

Despite repeated attempts Sebi chairman G N Bajpai was not available for comment.

Officials said special teams of Sebi officials have been entrusted with the task of just monitoring the stock movements and co-ordinating with the exchanges.

Since the foreign institutional investors are driving the current rally in the markets, brokerages acting on behalf of portfolio investors have been told to exercise restraint and have their due diligence processes in place.

Sources said that the inflows through the participatory notes route have also risen a lot in the last couple of months.

"We are also monitoring these inflows and the clients on whose behalf the stocks are being bought."

The exchanges have also been told to step up their stock alert and suerveillance mechanisms and to take action at the slightest bit of suspicion.

"This is not to say that we suspect the foreign investors, but there may be other speculators who may take advantage of the increase to engineer unusual movements in scrips," said an exchange official.