The Securities and Exchange Board of India (“SEBI”) has issued a comprehensive master circular consolidating various provisions relating to surveillance measures applicable in the securities market. The circular aims to strengthen the surveillance framework by bringing together existing guidelines, measures and mechanisms implemented by stock exchanges for monitoring unusual trading activities, abnormal price movements and potential instances of market manipulation.
Over the years, SEBI and stock exchanges have introduced various surveillance measures through separate circulars and regulatory communications, including frameworks relating to abnormal price movement, enhanced monitoring, trading restrictions and risk-based surveillance. Since these provisions were spread across multiple circulars, market participants were required to refer to different regulatory documents for understanding the applicable requirements.
