Write short notes on the following: Key features of Preventive Surveillance

Following are some important features or ingredients of preventive surveillance: Stringent On boarding norms for Trading Members - Stringent net worth, back ground, viability etc. checks while on boarding Trading Members. Index circuit filters - It brings coordinated trading halt in all equity and equity derivative markets at 3 stages of the index movement, either way viz., at 10%, 15% and 20% based on previous day closing index value. Trade Execution Range - Orders are matched and trades take place only if the trade price is within the reference price and execution range. Order Value Limitation - Maximum Order Value limit allowed per order. Cancel on logout - All outstanding orders are cancelled, if the enabled user logs out. Kill switch - All outstanding orders of that trading member are cancelled if trading member executes kill switch. Risk reduction mode - Limits beyond which orders level risk management shall be initiated instead of trade level. Compulsory close out - Incoming order, if it results in member crossing the margins available with the exchange, such order will be partially or fully cancelled, as the case may be, and further disallow the trading member to create fresh positions. Capital adequacy check - Refers to monitoring of trading member's performance and track record, stringent margin requirements, position limits based on capital, online monitoring of member positions and automatic disablement from trading when limits are breached. Trade for Trade Settlement - The settlement of scrip's available in this segment is done on a trade for trade basis and no netting off is allowed. Periodic call auction - Shifting the security form continuous to call auction method. Rumour Verification - Any unannounced news about listed companies is tracked on online basis and letter seeking clarification is sent to the companies and the reply received is disseminated. End of day alert - Alerts generated using statistical tools. The tool highlights stocks which have behaved abnormally form its past behaviour. Pattern recognition model - Models designed using high end tools and trading patterns which itself identifies suspects involving in unfair trading practice. Transaction alerts for member - As part of surveillance obligation of members the alerts are downloaded to members under 14 different heads.