Mumbai, Nov 8: In a bid to curb the speculative tradings based on unsubstantiated price sensitive rumours, the Bombay Stock Exchange (BSE) has set up a "rumour cell." The aim of the cell is to ascertain the veracity of rumours or other price sensitive informations with the respective companies so that the effect of such speculation on the market is minimised. This cell, presently being manned by two BSE officials, would regularly interact with the stock brokers to gather information about the rumours spreading in the market and check with the companies listed on the BSE for verifying the exactness of the information making rounds in the market, so that the same could be put on the BSE online terminals as early as possible.A stock broker who comes across any unsubstantiated information could also inform the cell for checking the facts about such information.
Speaking to The Financial Express, the BSE vice president Deena Mehta said: "Rumour cell is another step towards improving the efficiency and the transparency in the BSE".
This cell would not only help in reducing the spread of rumours by a section of the market players, but would also help in curbing the insider trading to a certain extent.
"We have already taken up these matters with 60 to 70 companies and the response has been very encouraging," Ms Mehta said. These new initiatives are part of the listing agreement between the company and the stock exchange. Presently stock exchanges have a surveillance cell which tracks the stock price movements and if there is a sudden change, this cell looks into the matter. In addition, stock exchanges also keep a watch at the various corporate news items appearing in the media to find out the actual fact.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.