BSE Share Price in Focus as SEBI Slaps ₹25 Lakh Fine for Unequal Data Access

The Securities and Exchange Board of India (SEBI) has fined the Bombay Stock Exchange (BSE) ₹25 lakh after identifying gaps in its disclosure systems and oversight mechanisms, as per the reports. The order followed an inspection carried out between February 2021 and September 2022.

Unequal Access to Information

SEBI found that BSE’s internal listing compliance monitoring team and paid clients were able to access corporate announcements before they were published on the exchange’s public platform. The website followed a manual data pull model, which led to slight delays for regular users.

The inspection revealed that BSE did not have an automatic and simultaneous data dissemination mechanism in place. There was no Real Simple Syndication (RSS) feed to ensure uniform access. This created a situation where select users had early visibility into price-sensitive information.

Penalties Under Two Sections

Out of the ₹25 lakh fine, ₹15 lakh was imposed under Section 23H of the Securities Contracts (Regulation) Act for failing to ensure equal access to disclosures. An additional ₹10 lakh was levied under Section 15HB of the SEBI Act for lapses related to broker supervision and trade monitoring.

SEBI noted that BSE did not take action against brokers who frequently modified client codes. It also found an inadequate review of trades routed through error accounts and code changes between unrelated institutional clients. These activities were not backed by proper due diligence.

Corrective Actions and SEBI’s Findings

BSE stated that the violations were technical and that corrective steps had been taken after the inspection. However, SEBI observed that the changes were made only after the issues were highlighted. The regulator held BSE responsible for not preventing situations that could lead to selective access.

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BSE Share Price Performance 

As of 10:46 AM on June 26, BSE share price was trading at ₹2,760.40, down 1.03%, though the stock has gained 52.22% over the past 6 months and 226.01% in the past year.

Conclusion

SEBI’s order pointed to systemic gaps in BSE’s operations, particularly in areas concerning fair disclosure and broker supervision. The exchange’s stock closed at ₹2,789 on the day of the order.

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