In a major push towards real-time surveillance and data integrity, the Securities and Exchange Board of India (SEBI) has rolled out a technology-based framework aimed at improving oversight in the securities market. This new mechanism is expected to strengthen compliance, enhance transparency, and safeguard investor interests through automated monitoring tools.
What the Framework Covers:
The newly introduced system primarily focuses on:
Tracking end-use of funds raised by listed companies.
Monitoring related party transactions (RPTs) more effectively.
Ensuring timely disclosure of financial results and material events.
Streamlining data flow between listed entities, market intermediaries, and SEBI.
The framework mandates companies to upload structured digital data on SEBI portals using machine-readable formats. This will enable SEBI to conduct real-time checks and analytics using Artificial Intelligence (AI) and data mining tools.
Why This Matters:
SEBI’s latest move is part of its broader strategy to digitize regulatory processes and prevent financial irregularities. It aligns with global trends where technology is being used to predict, detect, and prevent non-compliant behavior in capital markets.
Companies that fail to adapt to this system may face regulatory flags, increased scrutiny, or even penal actions under the SEBI Act.
India Advocacy’s View:
The framework marks a paradigm shift in regulatory compliance. Businesses must now focus on systematic data reporting, real-time compliance tracking, and governance automation.
Our team at India Advocacy is equipped to help listed companies and market participants integrate with SEBI’s tech framework through legal, audit, and process advisory support.
