Speaking at the 49th Foundation Day Lecture of IIM Bangalore, Sebi chairperson Madhabi Puri Buch highlighted the advancements that the regulator has done in terms of harnessing technology and data to prevent or minimise wrongdoings in the securities market.
Interestingly, she also highlighted the way violators have evolved following the regulator’s enhanced focus on technology as a tool to aid in surveillance.
“People’s modus operandi becomes smarter and smarter. Earlier people used to be foolish enough to do insider trading in their own names. Then they realised that Sebi can catch them so they started doing [trading] in their mother, father, etc name,” she said while replying to audience queries post her presentation.
“Then they realised that common surnames also Sebi catches. Then they started doing in mother-in-law’s name. Then they realised Sebi is now able to connect mother-in-law also then ‘behnois’ became very popular. I am serious. Because there is no way you can connect your sister’s husband. Then we realised we can do [catch] through call data records. Then they moved to WhatsApp. Now WhatsApp is a problem,” added Buch, the first female chief of the capital markets watchdog.
‘Enforcement 40’ for 2020
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