Month: September 2022

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Sebi looks to boost surveillance of social media, and other platforms through web intelligence tool

Sebi is looking to boost surveillance of social media and other platforms through a web intelligence tool using artificial intelligence and data analytics to probe violations of various securities laws by individuals, groups, and other entities.
In this regard, the capital markets regulator has invited Expression of Interest (EOI) from solution providers to implement, install and maintain a ‘Web Intelligence Tool’, according to public notice.

Noting that internet usage has risen exponentially over the last few years which resulted in the production of immense amounts of unstructured publicly available data on the web, Sebi said this unstructured data has the potential to provide deep investigation insights about various entities, individuals, groups, and topics related to violations of different securities laws.
Manual extraction and analysis of massive amounts of unstructured publicly available data in order to reveal actionable insights are usually time-consuming, tedious, and have limited efficacy.

“Sebi is looking for a Web Intelligence Tool which provides AI (Artificial Intelligence) based solutions to extract and analyze unstructured publicly available data to gain deep intelligence insights about various entities, individuals, groups and topics,” per the notice.

The new tool is expected to save time, ease the analysis process, and improve the overall investigation process efficiency. The regulator said that the tool should be able to gather unstructured publicly available data from the web, including public websites, social media platforms, and open source databases among others, in respect of relevant entities, individuals, groups, and topics.

The tool should enable investigators to easily analyze massive amounts of complex unstructured data using its AI and data analytics capabilities.

It should have the capability to visualize the data in the form of a network chart to find insights about connections among relevant entities, individuals, and groups. The visualization should be interactive and allow users to work with the data as per user requirements.

The tool should generate ready-made reports based on the defined report templates, and the users should be able to create and modify report templates without any coding requirement. Interested parties can submit the bids by October 3, the regulator said.

Recently, Sebi has unearthed a large number of insider trading and front-running cases where ‘mule accounts’ were being used with the help of the latest technology tools.

Eqwires Research Analyst

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Rupee likely to remain steady amid strong dollar, risk aversion in markets; USDINR pair to trade sideways

The Indian rupee is expected to remain sideways on Friday amid falling crude prices, risk aversion in global equity markets, and a strong dollar. The USDINR pair is having resistance at 79.90 and 80.15, while the support has shifted to 79.40 from 79.05, according to analysts. In the previous session, the rupee declined due to strong demand for the U.S. dollar from oil companies, while markets braced for a big rate hike from the U.S. Federal Reserve next week. A firm American currency and a negative trend in domestic equities weighed on the currency. At the interbank foreign exchange market, the local unit opened at 79.53 per dollar, and settled at 79.73, down 21 paise over its previous close.

Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services

“Rupee on Thursday consolidated in a narrow a range and volatility remained low even after inflation number from the US and the UK came above estimates. The dollar was slightly higher following data showing U.S. retail sales unexpectedly rebounded in August. But gains for the dollar were restricted as data for July was revised downward to show retail sales declining instead of flat as previously reported. The greenback has been supported by the view that the Fed will keep tightening policy aggressively.”

“Yen was under pressure after a record Japanese trade deficit for August. The yen’s fall by nearly 20% over the past six months added to higher import costs, aggravating already high costs of energy and raw materials. The market remains choppy knowing that there’s a Fed meeting next week. Even though market participants agree that there could be a 75 basis points rate hike, it’s what the statement adds to previous commentary and what Chairman Powell says in his press conference. We expect the USDINR(Spot) to trade sideways and quote in the range of 79.40 and 80.05.”

Dilip Parmar, Research Analyst, HDFC Securities

“The Indian Rupee could fall lower following a weak handover from overseas. Overnight, we have seen risk-averse moods after mix bag of US economic data that backed the view of hawkish monetary policy. US Swaps traders are currently pricing in a 75 basis-point hike when the Fed meets next week. The weakness in the Chinese yuan which crosses the 7 could also weigh on other regional currencies.”

“Asian stocks headed for the fifth week of declines following more weakness in US equities and a surge in short-end Treasury yields that reflects expectations for outsized Federal Reserve interest rate hikes. On Thursday, spot USDINR gained 26 paise to 0.33% to 79.79 and heads for the first weekly gain after two weeks of fall. The technical set-up turned bullish after the past two days of price action. The pair is having resistance at 79.90 and 80.15 while the support has been shifted to 79.40 from 79.05.”

Amit Pabari, MD, CR Forex Advisors

“Inflation in the US and its strong consumer and labor markets are backing the Fed’s aggressive rate hike decision in the upcoming policy meeting on 21st September. Markets have priced in fully the chance of an increase of 0.75 bps while the 30% see an increase of 1 full percentage rate hike as of today, all of which is supporting the strength in the US dollar and shot the US 10Y yields to a 52-week high yesterday. Here, the recent sharp appreciation in rupee near 79.00 levels has been quickly washed off for it to trade again back to near 79.80 levels.”

“It could be the influence of the strong dollar, weaker sentiments, or weakening of the Chinese Yuan past 7.00 all negative factors weighing on the rupee. The next move toward 79.95 and 80.10 is basically the RBI’s play as one needs to be cautious of the central bank intervention from the past two times. For now, the level of 80.10 remains a strong resistance for the USDINR pair, which hasn’t been able to breach multiple times in the past though however posed the rest of the currencies are. Breaking 80.10 could invite another upside move of 50 paise to 1 rupee. On the flip side, 79.00 remains strong support for the pair.”

Eqwires Research Analyst

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India’s procurement of crude oil from Russia not under govt-to-govt framework: Foreign secretary

India’s procurement of Russian crude oil is not under any government-to-government framework and Indian entities make the purchase from the market to respond to the country’s energy security requirement, Foreign Secretary Vinay Kwatra said on Thursday.

Kwatra also chose not to comment on the proposed price cap on Russian oil, a move initiated by the G7 countries to choke Moscow’s oil revenue.

The G7 countries are reportedly seeking India’s support to enforce the price cap on Russian oil.

The comments by Kwatra came at a media briefing on Prime Minister Narendra Modi’s visit to Uzbekistan to attend the SCO summit.

Modi is set to meet Russian President Vladimir Putin on the sidelines of the Shanghai Cooperation Organisation summit (SCO) summit. India’s procurement of discounted crude oil from Russia has seen a significant jump in the last few months notwithstanding an increasing disquiet over it by the Western countries.

“India is not a member of the G7. Deeper discounts, market pricing.. look, we have said several times that when the Indian entities go out and try to respond to India’s energy security needs and procure oil, they essentially procure it from the market,” Kwatra said.

He was responding to a question on the issue.

“These are not government-to-government purchases that we do. On the price cap coalition, what form it takes, what shape it evolves into, I think the countries that floated that idea perhaps can better answer to it,” he said.
India’s crude oil imports from Russia have jumped over 50 times since April and now it makes up for 10 percent of all crude bought from overseas.

Russian oil made up for just 0.2 percent of all oil imported by India prior to the Ukraine war.

The Western countries are gradually bringing down their energy purchases from Russia following its attack on Ukraine.

The G7 comprised Japan, the UK, the US, Canada, France, Germany, and Italy.

Eqwires Research Analyst

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