Sebi to check insider trading & market manipulation through Smartphone

Sebi to check market manipulation through smartphones
In an attempt to check the risks being posed by the widespread use of technology related to Smartphone's like Whatsapp and Blackberry's BBM, Sebi is mulling over new steps to strengthen its probe and oversight on stock market transactions.

However, controlling the mass-messaging applications isn't easy given the multi-level difficulties faced in tracking the source and spread of market-sensitive information through these platforms, a senior official said.

According to reports, the transmission of messages through these platforms happen in a highly encoded manner and it is very difficult for a third party to decode them. Hence, these platforms seem to have become an attractive proposition among the manipulators.

The recent investigations by Sebi into several insider trading and market manipulation cases have shown that apps like BBM and WhatsApp were used. However, any tangible solution for knowing the source of messages being spread through these platforms has proven elusive so far.

Read more about: sebi
Story first published: Monday, May 6, 2013, 9:30 [IST]
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