SAS HELPING SEBI CHECK

EQUITIES-TRADING
MALPRACTICES
INTRODUCTION: SAS
 SAS is an acronym for Statistical Analysis System
 SAS is an application software developed by SAS Institute for
Advanced Analytics, Multivariate Analysis, Business Intelligence,
Data Management and Predictive Analytics.
 SAS was developed at North Carolina State University from 1996
until 1976, when SAS Institute was incorporated. SAS was further
developed in 1980s and 1990s with the inclusion of new statistical
procedures, additional components and the introduction of JMP.A
point-and-click interface was incorporated in version 9 in 2004.A
social media analytics product was add-on in 2010.
 SAS is a software suit that can mine, alter, manage and retrieve
data from a variety of sources and can perform statistical analysis
on it. SAS provides a graphical point-and-click user interface for
non-technical users and more advanced options through the SAS
language.
 SAS programs have DATA steps, which retrieve and manipulate
data, and PROC steps which analyze the data. Each step consists
of a series of statements.
 The DATA step has executable statements that result in the
software taking an action, and declarative statements that
provide instructions to read a data set or alter the data’s
appearance.
 The DATA step has two phases:
 Compilation and Execution. In the compilation phase, declarative
statements are processed and syntax errors are identified, data
has a descriptor and a value.
SUMMARY OF THE CASE
 The Securities and Exchange Board of India (SEBI) regulates the
securities market in India. It was stipulated in 1992 with the
passing of SEBI Act in the Indian Parliament as its main mandate,
in order to protect the interest of investors and to promote the
development of securities market in the country.
 SEBI was put in-charge with the task of dealing with unfair trade
practices and curbing illegal activities in the securities market.
 Increasing regulations and scrutiny requires a robust Surveillances
and Analytics System to detect malpractices.
 As a first step towards this SEBI, with the aid of SAS ,developed its
own data warehouse .Everyday SEBI records more than 200
million transactions, on the whole it collects 25GB of data per day,
a figure that is likely to reach 80 inch in a couple of years . With
the help of SAS, fraud can be detected on a daily, weekly, monthly
or quarterly basis.
 With its implementation SEBI officials are able to get hold of
uniform and formatted data ready for investigation next day.
Henceforth, SAS enables SEBI to uncover frauds in a more efficient
manner.
PROBLEMS IDENTIFIED
 SEBI was assigned with the task of dealing with unfair trade
practices and curbing illegal activities in the securities market.
 In 2014, incidents of insider trading or front trading has been
reported.
 SEBI has brought front-running under the ambit of the FUTP,
entities that fail to register with SEBI also comes under FUTP.
ANALYSIS OF THE PROBLEM
 Everyday SEBI records more than 200 million transactions. On the
whole it collects 25GB of data per day.
 The system is designed to track and analyze the collected data
based on that, the surveillance engine generates alert so that
investigations can be conducted on a case-by-case basis.
 Once the data is loaded from the exchange into the warehouse in
the desired format, aggregates are computed and stored in
database.
SOLUTION TO THE PROBLEM
 Increasing regulations and scrutiny requires a robust Surveillances
and Analytics System to detect malpractices.
 As a first step towards this SEBI, with the aid of SAS ,developed its
own data warehouse .Everyday SEBI records more than 200
million transactions, on the whole it collects 25GB of data per day,
a figure that is likely to reach 80 inch in a couple of years . With
the help of SAS, fraud can be detected on a daily, weekly, monthly
or quarterly basis.
 With its implementation SEBI officials are able to get hold of
uniform and formatted data ready for investigation next day.
Henceforth, SAS enables SEBI to uncover frauds in a more efficient
manner.
ENTERPRISE DATA WAREHOUSE USED IN SEBI

 Another feature of SAS is that it helps the SEBI is the parallel

processing of the data.
 Using SAS analysis, SEBI can analyze recommendations blogs, and
annual reports to understand the impact of social media on
investor behavior and also can generate the relationship between
them and reported frauds.
 In using SAS SEBI’s main aim to increase the conviction ratio.
 It assists SEBI in order to recover the fraud activities for an
efficient manner.