In an effort to prevent stock manipulation on the stock exchanges, SEBI has asked broking firms to ensure that their staff does not circulate rumours, or unverified information, obtained from client, industry or any other sources. Unauthenticated news pertaining to a particular stock when transmitted through chats, blogs, mobile phones, etc. has an adverse impact on the trading price of such a stock.
According to SEBI, due to lack of proper internal controls and poor training, employees of such intermediaries are sometimes not aware of the damage which can be caused by circulation of unauthenticated news or rumours.
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Rumours unhealthy for investors: SEBI
According to SEBI, due to lack of proper internal controls and poor training, employees of such intermediaries are sometimes not aware of the damage which can be caused by circulation of unauthenticated news or rumours.
Read More:
Rumours unhealthy for investors: SEBI
