"The common view is that there was no panic as was reported in the media," noted National Stock Exchange deputy managing director Ravi Narain. The view was seconded by Sebi chairman DR Mehta and other senior Sebi officials.

After scrutinising the financial positions of members at various exchanges and the margin money collected on October 5, when the Sensex plunged 224 points, the group reached a consensus that the market was safe and there was no threat to its integrity.

"After evaluating the present surveillance checks we realised that it was adequate to monitor and ensure market safety even when there was so much an upheaval," explained LK Singhvi, Sebi executive director inchargeof surveillance and investigation.

It was pointed out that NSE was the only exchange which had set up its stock watch system. Five other exchanges are expected to install such a system by December this year. The group felt that there was a need to fine tune the surveillance mechanism in terms of providing a formal training to the staff who administer the surveillance at the exchanges.

The group has, therefore, decided to conduct a training and certification programme for the surveillance staff of the exchanges. Singhvi explained that the ISCG has formed a sub-group comprising representatives of stock exchanges and Sebi, who would be responsible for preparing a "training capsule" within a span of 15 days.

The group also said it was essential to improve the process of information sharing between exchanges. Another committee was formed comprising senior officials from BSE, NSE, Calcutta, Bangalore and Delhi Stock Exchanges, who would work out the modalities for dissemination of information betweenexchanges.

The group also discussed the modalities of the reporting format, which the exchanges need to adhere to. It was decided that the current format was outdated and had to be restructured and tuned with a specific focus.

In the light of the current norms on the eligibility criteria for the entry of a broker into the governing board, the group also decided that a broker suspended from trading would not be allowed to get elected to the board for a period of two years.