BSE is one of the few stock exchanges in the world, which has obtained the ISO certification for its surveillance function. The main objective of the surveillance function is to promote market integrity in two ways,
- By monitoring price and volume movements (volatility) as well as by detecting potential market abuses (fictitious/ artificial transactions, circular trading, false or misleading impressions, insider trading, etc) at a ascent stage, with a view to minimizing the ability of the market participants to influence the price of any Security in the absence of any meaningful information
- By taking timely actions to manage default risk.
The surveillance activities at BSE are allocated to three Cells:
- Price Monitoring: is mainly related to the price movement/ abnormal fluctuation in prices or volumes of any Security
- Investigations: conducting snap investigations/examinations/detailed investigations in Securities where manipulation /aberration is suspected.
- Position Monitoring: relates mainly to abnormal positions of Members in order to manage the default risk