BSE adopts mechanism for rumour detection about listed firms
The artificial intelligence mechanism will mitigate potential risks of market manipulation says BSE
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New Delhi: To deepen its regulatory oversight of newer channels of communication in capital markets, BSE on Monday said it has introduced a data analytics based systemic solution to track news about listed companies on digital media.
The mechanism, which relies on artificial intelligence mechanism, will detect and mitigate potential risks of market manipulation, rumour and reduce information asymmetry arising from it on digital media platforms, including social media, BSE said in a statement.
It provides accurate information involving listed companies and BSE through the exchange website for the benefit of investors. BSE said it will continue to deploy and enhance advanced technological innovations to track social media. The exchange currently offers a variety of facilities which include a portal “Listing Center” enabling the listed companies to file their disclosures in an electronic manner via XBRL webpage. The online reporting was introduced in order to bring in more accuracy, efficiency and timeliness. It was in compliance with Sebi (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The exchange said alerts generated by this social media solution will be closely monitored by BSE from the standpoint of material information and also vis-a-vis possible rumours appearing in various media including print and on-line channels as per Sebi norms. Any differences observed therein are required to be explained by the companies and their responses are then disseminated on the exchange website for the benefit of investors and market participants to take informed decisions.
In the recent past, news media has undergone a sea change, with digital media and social media becoming the frontline in news reporting or sharing information digitally for easier, faster and wider reach.
Further, more and more people are embracing social media for various purposes, including for their financial planning. Against this background, any material news or rumour floating in the social media can have a very big potential for impacting sentiment of the investing population which can further affect price and volumes of securities traded on exchange platforms.
As a regulated stock exchange, BSE continuously strives to bring in various policy initiatives and measures in a pro-active manner and has, in the recent past, undertaken various regulatory policy and systemic measures for enhanced due diligence, surveillance, corporate governance in the capital markets to comply with Sebi regulations.