In an inspection report carried out by SEBI in May, it said that the information which was available through C-star for surveillance purposes was 'grossly inadequate'.

The SEBI inspection report on surveillance also said that the staff and personnel in the exchange were not equipped to understand manipulation, which is an integral part of surveillance.

In its next board meeting slated for July 11, the stock exchange board would discuss the surveillance inspection report and an action plan would also be drawn up to counter the charges levelled by SEBI against the exchange, a board member of the the stock exchange said.

The report stated that the CSE surveillance cell has not detected any abnormality, which SEBI has dubbed it as a failure on the part of the exchange authorities. In the last inspectionreport of SEBI, the capital market watchdog had made scathing remarks about the stock exchange surveillance cell.