Robot Watchdog

April 26, 2007 (LBO) – Securities and Exchange Commission of Sri Lanka (SEC) is considering introducing computerized surveillance systems to monitor stock market activity and detect abuses as trading volumes get bigger. The SEC is looking at a few systems by vendors here and in India, including the National Stock Exchange, de Silva said. We’re thinking of introducing computer systems to do the surveillance as human intervention is not adequate given the increasing volumes, Channa de Silva, director general of the SEC told LBO Wednesday.

More effective surveillance of the market was required to make market players aware that it is very well regulated and clean and ensure better investor confidence.

With average daily turnover around 750 million rupees, we need systems to take over, de Silva said. Human intervention alone is not enough.

The markets regulator has in recent years been toughening its stance on abuses in the stock market as well as in corporate boardrooms.

As part of its efforts to clean up the market and improve investor confidence, the SEC Tuesday reviewed with a group of directors new corporate governance rules that are being mandatory for listed companies.