Stock market regulator, the Securities and Exchange Board of India (Sebi) on Tuesday said it has set up a committee "on fair market conduct".
The committee is expected to submit the report within a period of four months.
"The committee will suggest short term and medium term measures for improved surveillance of the markets as well as issues of high frequency trades, harnessing of technology and analytics in surveillance. The committee will also suggest evidentiary issues in antifraud enforcement," it said.
The panel will work under the chairmanship of former Lok Sabha Secretary General and former Law Secretary T.K. Viswanathan.
Other members of the committee will be representatives of law firms, mutual funds, retail brokers, institutional brokers, forensic auditing firms, foreign portfolio investors, stock exchanges, chambers of commerce, data analytics firms and Sebi.
The regulator said a fair and efficient securities market stands on investor confidence and the same can be instilled by keeping the market free from manipulative practices, adding that regulatory intervention in this regard has been made in the areas of market manipulation and insider trading.
Similarly in order to curb the practice of market manipulation, the regulator framed SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Markets) Regulations, 2003.
Sebi said that the terms of reference of the committee includes identification of opportunities for improvement in its Prohibition of Insider Trading Regulations, 2015 and Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Markets Regulations, 2003, more particularly with respect to trading plans, handling of UPSI during takeovers and align Insider Trading Regulations to Companies Act provisions, a statement said.
The regulator also said it was noted that the securities market environment being dynamic, periodic review of regulations and surveillance mechanisms was of utmost importance in order to effectively discharge the objectives of it.