Sebi Fines BSE Rs 25 Lakh for Failing to Ensure Equal Access to Corporate Disclosures

The Securities and Exchange Board of India (Sebi) has imposed a Rs 25 lakh penalty on the Bombay Stock Exchange (BSE) for its failure to provide equal access to corporate disclosures. The penalty comes after Sebi's inspection, conducted from February 2021 to September 2022, revealed significant lapses in BSE's dissemination processes.

Sebi's 45-page order highlighted that BSE's system architecture allowed its paid clients and the internal listing compliance monitoring (LCM) team to access corporate announcements before public release. This breach of norms compromised the integrity of market information and offered unfair advantages.

Additionally, Sebi observed BSE's inadequate monitoring of client code modifications, which raised concerns about the potential misuse in trades. The market regulator stressed the need for BSE to establish robust internal controls to manage sensitive information and comply with regulatory obligations.

(With inputs from agencies.)