Edited by: Namit Singh Sengar
Last updated: February 13, 2023, 4:12 PM IST
SEBI said that the detailed application by the companies should reach SEBI by March 6, 2023 as per the attachment provided.
SEBI has also recently proposed an institutional mechanism that will require stockbrokers to put in place systems to detect and prevent market abuse.
The Securities and Exchange Board of India (SEBI) has issued a call for tenders to invite expressions of interest (EOI) for the deployment of forensic auditors to conduct forensic audits of Mutual Funds, its asset managers, its trustee companies or the board of supervision.
The tender stated that the firms/courts will also have ongoing experience in digital forensic services for acquiring, extracting and analyzing digital evidence from mobile phones, computers, tablets, etc.
The applicant is required to;
- Perform forensic acquisition, extraction including imaging of various types of digital devices such as laptops, mobile phones, smartphones (including I-phones, I-pads, tablets), hard drives, USB drives, CDs/DVDs, servers, cloud networks etc. generating hash value reports and preparing separate working copy by using legal and most efficient and updated forensic tools.
- Perform digital and mobile forensics including full data indexing, timeline analysis, metadata analysis, decryption and password cracking, keyword search, data retrieval, etc.
- Perform analysis as required by SEBI using appropriate tools.
- Ensure confidentiality of information collected during the assignment.
- Prepare and submit a report stating the findings and conclusions on the analysis/investigation as per the terms of reference and within the timelines specified by SEBI.
Read also: Whistleblower protection, prevention of fraud and market abuse; This is what Sebi wants from stockbrokers
SEBI said that the detailed application by the companies should reach SEBI by March 6, 2023 as per the attachment provided.
SEBI has also recently proposed an institutional mechanism that will require stockbrokers to put in place systems to detect and prevent market abuse.
SEBI has released a consultation document seeking the views of market participants on a proposal requiring brokerage firms and their senior management to be responsible for such detection/prevention of fraud or mark misuse, by establishing and ensuring robust monitoring and control systems for appropriate escalation and reporting mechanisms.
This proposal also lists some common examples of market abuse that brokers should look for to detect/prevent, the entities that should be overseen and the accountability that comes with it.
Currently, there are no specific legal provisions that give brokers the responsibility to put systems in place to detect and prevent fraud or market abuse.
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