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News Topical, Digital Desk : SEBI News: The Securities and Exchange Board of India (SEBI) on Wednesday, June 25, imposed a total fine of ₹25 lakh on the Bombay Stock Exchange (BSE). The fine was imposed following an investigation conducted by SEBI, which found several deficiencies in the exchange's disclosure system and compliance process.

SEBI has imposed a fine of ₹15 lakh under Section 23H of the Securities Contracts (Regulation) Act for failure of BSE to make corporate announcements available to all in an equitable and transparent manner.

The investigation between February 2021 and September 2022 found that BSE's system infrastructure was such that its Listing Compliance Monitoring Team and some paying clients could view corporate filings before they were made public on the exchange's website. The information distribution system was not a uniform information distribution system for all users in this process, but data was pulled from the website manually, giving information to select users a few seconds earlier. This situation created the possibility of unequal distribution of information. Apart from this, SEBI also found that BSE did not take appropriate action against brokers who frequently changed client codes. Trades done through wrong accounts were not properly reviewed and code changes were allowed between unrelated institutional clients without proper investigation. Due to these violations, SEBI imposed an additional fine of Rs 10 lakh under Section 15HB of the Securities and Exchange Board of India Act. This fine was for violation of circulars issued in 2004, 2011 and 2021. No loss to investors BSE said in its clarification that these violations were technical, which did not cause any loss to the investors nor did the exchange get any unfair advantage. He also said that corrective steps have been taken and the difference in data distribution was not intentional. The time differences were often at the level of milliseconds, which were due to delays in server infrastructure and synchronization.


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