Market regulator Securities and Exchange Board of India (SEBI) has introduced artificial intelligence (AI)-based system, Picture-based Information News Accumulator and Key Information Analyser (Pinaka).
This will carry out surveillance on stock recommendations aired on television (TV) shows and condense it into a database. With the introduction of Pinaka, SEBI will closely monitor stock recommendations made by television shows and will also take note of any wrongdoings such as front running and insider trading.
The database of Pinaka will be part of SEBI’s big-data network, which the market regulator will use to conduct inspections for equity market-related offences. Pinaka will check each frame of all major TV shows displaying stock recommendations through programming.
After extracting this information, the AI tool will convert unstructured data into a structured format for surveillance purposes. And, the structured data will be compared with stock trading patterns with the analyst’s suggestions being used for the TV audiences.
This move comes after the market regulator had directed mutual fund asset management companies (AMCs) to regularly keep a tab on social media platforms and take appropriate action against entities misusing the names of mutual fund houses in a bid to lure investors into investing.
SEBI had called for mutual funds to promptly take appropriate actions, including issuing a press release or public notice as well as filing a first information report (FIR) if the need arises.
Rajiv is an independent editorial consultant for the last decade. Prior to this, he worked as a full-time journalist associated with various prominent print media houses. In his spare time, he loves to paint on canvas.