Breaking News

The Securities and Exchange Board of India directed market intermediaries to put internal code of conduct and controls in place. Check more

The Securities and Exchange Board of India directed market intermediaries to put internal code of conduct and controls in place, to deal with the rise in circulation of unauthenticated news by SEBI-registered market intermediaries through various modes of communication. This comes after the regulator said it has observed that a lot of unauthenticated news related to stocks through blogs/chats; emails, forums was being circulated by the employees of broking houses and other intermediaries. This is being done without any caution as mandated under the code of conduct of stock brokers; and respective regulations of various intermediaries registered with SEBI.

If the employee doesn’t comply, he/she should be considered to have broken the SEBI Act’s.

The regulator told the intermediaries that the access to such blogs, chat forums; messenger should be restricted under supervision or access should not be allowed. Any market-related news that workers receive via email, blogs, personal or official mail; or in any other way should be instructed to not be forwarded until it has been reviewed and approved by the compliance officer of the relevant intermediary. If the employee doesn’t comply, he/she should be considered to have broken the SEBI Act’s numerous provisions and will consequently be subject to punishment. In this case, the compliance officer should also be held accountable for breach of duty violations, the circular said.

Leave a Reply

Your email address will not be published. Required fields are marked *