What is market abuse ? Explain the functioning of price monitoring.

Market abuse is a broad term that includes abnormal price/volume movement, artificial transactions, false or misleading impressions, insider trading, etc. To detect aberrant behaviour/movement, it is essential to understand normal market behaviour. The concerned department of the stock exchange uses various tools to determine normal and abnormal market behaviour. The department conducts investigations based on preliminary examination/analysis, and appropriate actions are taken against members involved based on the investigation. Functions of Price Monitoring: The functioning of Price Monitoring is broadly divided into the following activities: Online Surveillance Offline Surveillance Derivative Market Surveillance Investigations Surveillance Actions Rumour Verification Pro-active Measures