Section 58 in Central Electricity Regulatory Commission (Power Market) Regulations, 2010
58. Market Surveillance by Exchange.
- (i) All Exchanges shall set up a surveillance department which shall carry out day to day monitoring of transactions and surveillance .They shall also undertake other analysis as mentioned in sub regulation (v).(ii)The Power Exchange shall also constitute a Market Surveillance committee headed by an independent director of the board and having members from the executive team of the Power Exchange. No member of this committee shall be a Member of the Power Exchange.(iii)The Power Exchange surveillance department shall submit its analysis report to the market surveillance committee. The Market Surveillance committee shall submit quarterly surveillance reports to the Commission.(iv)Market surveillance shall be executed from a physically secure and restricted area by authorised personnel only and the personnel shall maintain information and data security at all times and especially when the auction window is open. All conversations of such personnel shall be recorded and it shall be made known to them that these are recorded telephone lines. Audio tapes shall be made available to the Commission on demand.(v)The surveillance department shall analyse bidding patterns and transactions of participants. The analysis report to be submitted to the Commission on quarterly basis shall be in the following particular areas but not limited to:-(a)Open position by clients, by contracts;(b)Members of Exchange's pattern of transaction over a specific time period;(c)Daily, weekly, monthly Volatility analysis of prices (day ahead and term ahead contract prices);(d)Price setter analysis of buyer and seller;(e)Dominant participants and Market concentration(f)Circular Trading monitoringExplanation. - A fraudulent transaction to buy and sell the same quantity of a contract, at the same price and at the same time, without actual change of ownership.(g)Analysis of sudden high transaction volumes or sudden increase in open position of Member of Exchange;(h)Analysis and reason of persistent default by any member on the Exchange or Clearing Corporation;(i)Analysis of transactions to check that the market splitting methodology as approved by the Commission is being followed in operation in case of congestion in transmission corridors.
