SUMMARY
SEBI plans to augment analytical tools with AI, ML, and deep learning among others for social media surveillance
In the next five years, SEBI will be spending INR 500 in IT infrastructure and technological innovation
SEBI simplifies framework for startups to switch to mainboard trading
Securities and Exchange Board of India (SEBI), on Tuesday (November 18), announced that the markets regulatory body is looking at integrating various social media analytics and tools with machine learning (ML), deep learning and artificial intelligence (AI) among other technologies for social media surveillance.
At the South Asian Diaspora Convention held at the National University of Singapore on Saturday (November 16), SEBI Chairman Ajay Tyagi said that in the next five years the regulatory body will be spending INR 500 Cr to upgrade its IT infrastructure with its own private cloud systems and new technology integration, as reported by TOI.
Further, Tyagi also said the emerging technologies such as distributed ledger technology (DLT), blockchain, robotic process automation (RPA) and natural language processing (NLP) across industries are being used and experimented with, globally.
SEBI also acknowledged the possible risks associated with technology adoption and will ensure that the changes comply with regulations and the International Organization of Securities Commissions (IOSCO) objectives and principles, Tyagi added.
For those unaware, the IOSCO objectives and principles of securities regulation include 38 principles of securities regulation, which ensures the protection of investors, fair markets trade, efficient and transparent transactions, and reduces systemic risk among others
Most importantly, Tyagi said that SEBI has put in place the best network operations centre (NOC) for monitoring and facilitating its network and the securities operations centre (SOC), where it detects and mitigate cyberattacks, at all times.
SEBI Announces New Framework For Startups And More
In September 2019, SEBI had announced a new framework which allows startups to seamlessly switch from Innovators Growth Platform (IGP) to mainboard trading. For startups to trade under regulator category, it has to be profitable for three years or at least 75% of its shareholding with qualified institutional investors (QIB)
Further, the total capital should be at least 20%, where the guidelines require director’s or promoter’s contribution, which includes offerings made by alternative investment funds, foreign venture capitalists, scheduled commercial banks, public financial institutions to insurance companies.
Additionally, to increase the participation of retail investors in the matter of corporate governance, SEBI had said that it is working on developing an online voting mobile application to increase the participation of retail investors in the matter of corporate governance.
