10. Role and Function of the BSE
The primary objective of the BSE's systems regarding insider trading is prevention. Prompt disclosure by listed companies of price-sensitive information is one of the ways to limit the possibility of insider trading.
In terms of detection, the BSE's Market Surveillance System has in place a number of proprietary systems that have been specifically designed to detect unusual trading volumes and price movements.
The sophisticated surveillance system that has been adopted by the BSE is capable of identifying the names, addresses, telephone numbers and other details of the parties involved in the suspicious transactions.
If suspicious trading activity is detected, a report is produced and forwarded to the CMS Directorate at the BMA for further investigation.
To that end, the listed companies are required to update the Insiders Register within the CDS system at the BSE, whenever or wherever there is any change in the information relating to insiders.
The Agency and the BSE shall not approve any cross-listing unless the applicant and other Exchange(s) make all necessary requirements to update the CDS System regarding the dealings taking place on those Exchanges, and agree to provide the Agency with the information required.