The committee approved the purchase of the specialised surveillance package at its board meeting today. The package will be run on a separate server to monitor the market on a real-time basis.

The president of the exchange, Kamal Parekh told reporters that the package covers most of the requirements of the "Stock Watch" system prescribed by SEBI and includes several additional features for "monitoring market-related risks".

The cost of the entire package is still being negotiated and will depend on the software modules required by the exchange. The final agreement is expected to be signed shortly, the president informed. Thedecision to acquire the new software is a fallout of an earlier SEBI inspection report which had pointed out several shortcomings in the exchange's surveillance system. The existing system did not have the facility to store vital trade data for long periods, thereby blunting the surveillance function.

The new package will enable CSE to carry out surveillance functions more effectively on an "alert-based on-line mode". The exchange has already submitted its detailed reply which highlights the steps taken to strengthen the surveillance system.

In addition, the committee decided to create an additional data base of 3960 scrips traded on the BOLT system of BSE in the C-STAR master file. This will facilitate reporting of such transactions as cross deals in the C-STAR system with reference to trades executed on BOLT terminals installed in Calcutta.

All inter-exchange trades have compulsorily to be treated as cross deals as per conditions laid down by SEBI in this regard. This is to ensure proper monitoring byCSE of individual broker members' exposure to BOLT.