**SEBI Introduces New Alert System to Detect Market Manipulation**
*By Akash Pandey | Oct 12, 2025, 11:17 AM*
—
The Securities and Exchange Board of India (SEBI) has unveiled new rule-based alert tools aimed at detecting market manipulation, marking a significant step in enhancing the regulator’s market surveillance capabilities. This announcement was made by SEBI Chairman Tuhin Kanta Pandey at the BSE Brokers’ Forum’s Capital Market Confluence on Saturday.
### From Reactive Supervision to Predictive Oversight
Pandey highlighted SEBI’s strategic shift from reactive supervision towards predictive oversight. As part of this transition, the regulator has revamped its data warehouse system and developed role-based alerts specifically designed to identify pump-and-dump schemes and detect fraudulent trades conducted through bulk deals. These proactive measures aim to catch potential market manipulation early, preventing widespread impact.
In addition, SEBI is exploring a “safety net” framework for depository participants to ensure operational continuity during outages, similar to the existing framework for stockbrokers.
### Innovative KYC for NRIs
SEBI is also piloting a video-based Know Your Customer (KYC) verification system in collaboration with the Unique Identification Authority of India (UIDAI) and the Reserve Bank of India (RBI). This innovation will enable non-resident Indians (NRIs) to complete KYC remotely without the need to visit India, simplifying access to the securities market. Pandey emphasized that providing easy, secure KYC solutions for NRIs is an urgent priority.
### Emphasis on Digital Resilience and Data-Driven Supervision
With the rise of algorithmic and high-frequency trading volumes, SEBI’s focus is increasingly on building digital resilience and adopting data-driven supervision methods. The regulator is committed to continuously updating its frameworks to ensure fair and transparent operations within these trading segments.
Pandey also noted the significant growth in the cash equity segment, which has nearly doubled to exceed ₹1 lakh crore over the past three years, underscoring the need to deepen this market further.
### Streamlining Regulatory Processes
On the regulatory front, SEBI has introduced several measures based on detailed data analysis of index options, particularly concerning short-term derivatives.
Furthermore, the regulator plans to digitize and streamline the Foreign Portfolio Investor (FPI) registration process through the SWAGAT-FI framework. This initiative promises faster onboarding and lighter compliance for trusted investors, making FPI registration simpler, quicker, and fully digital.
—
SEBI’s new measures signal a strong commitment to protecting market integrity while embracing technological advancements to enhance operational efficiency and investor convenience.
https://www.newsbytesapp.com/news/business/sebi-introduces-rule-based-alert-system-to-detect-market-manipulation/story
