MUMBAI, Mar 9: In an attempt to strengthen the internal risk-management system of the exchange, the Bombay Stock Exchange has decided to revamp its online surveillance system.The exchange has invited bids from software majors to introduce an exclusive surveillance package and has already received bids from companies like Wipro, CMC and JCS. Compu Share, an Australian-based company, has also applied for the same. The presentations have been scheduled for last week of March.
Though BSE officials refused to comment on the need to revamp the existing system, sources say that the present system has many loopholes which need to be taken care of. The surveillance package, according to sources, would be in line with the requirements specified by the Securities and Exchange Board of India (Sebi).
The need for a revamp follows the business requirement specifications (BRS) report drafted by Marc Sherman Associates. The report has highlighted various areas which need an improvement in surveillance monitoring.``The exchanges are no more playing the role of providing a platform for trading of securities. Their role has widened to take care of investor's interest at large,'' said a BSE director.
``In such cases it is essential for us to strengthen our internal monitoring system and check the errant members and corporates at the grassroots level,'' he explained. According to market sources, the surveillance system, which is likely to be introduced by the first week of April, will be able to give out both online and offline alerts.
``The time factor is most crucial in any surveillance system,'' said a source. ``We have set a target of 30 seconds in our programme,'' he added. The time factor has been given a lot of attention, sources said.
With BSE's BOLT terminals having spread to over 145 centres in a span of six months, and expected to kick off in Pune, Ahmedabad and Calcutta shortly, it was considered extremely crucial for the exchange to undergo such an exercise.
The surveillance system will also have tokeep a check on the carryforward positions of the brokers, say sources.
