A total of 161fresh cases were taken up for investigation by Sebi in 2019-20 a decline of 17 per cent compared to the preceding financial year, as per the regulator’s latest annual report.
The cases were related to alleged violation of securities law, including market manipulation and price rigging.
“During 2019-20, 161 new cases were taken up for investigation and 170 cases were completed in comparison to 194new cases taken up and 110 cases completed in 2018-19,” the report said.
Sebi said that 49 cases or 30.4 per cent of the total cases that were taken up for investigation pertained to insider trading.
Also, 35 cases taken up for investigation were related to market manipulation and price rigging while issues related to manipulation and takeovers cases accounted for four cases. The remaining 73 cases pertained to other violations of securities laws.
The Securities and Exchange Board of India (Sebi) initiates investigation based on reference received from sources such as its integrated surveillance department, exchange reports, external governmentagencies, media reports and complaints.
The purpose of such an investigation is to gather evidence and to identify persons/ entities behind irregularities and violations so that appropriate and suitable regulatory action can be taken, wherever required, as per the annual report for 2019-20.
The steps involved during investigation process include an analysis of market data like order and trade log, transactionstatements and exchange report.
Among others, Sebi also analysed bank records like account statements and KYC details, information about a firm, call data records and information obtained from market intermediaries during the investigation process.
After completion of an investigation, the watchdog said that penal action was initiated wherever violations of securities laws and obligations relating to securities market were observed.
In 2019-20, Sebi initiated enforcementactions in 218 cases while it disposed of 151 cases. At the end of March 31, 2020, 376 cases were pending for action.
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