Sebi Strengthens Norms on Market Rumour Verification: What’s the Impact on Indian Stock Markets?
In a bid to protect retail investors and maintain market integrity, the Securities and Exchange Board of India (Sebi) has strengthened norms on market rumour verification. As a result, companies are now required to confirm, deny, or clarify market rumours reported in the mainstream media within 24 hours of such reporting. But what does this mean for Indian stock markets, and how can companies stay ahead of regulatory compliance?
Krumour, a platform developed by media insights firm Kanalytics, is emerging as a go-to solution for companies to comply with these regulatory norms. Designed to monitor and analyze news across print, digital, television, and social media in multiple languages, Krumour helps companies identify potentially price-sensitive information and respond swiftly.
The platform combines human expertise with algorithm-based monitoring and links media activity with real-time market price movements (MPM). It tracks media chatter across diverse channels and correlates it with MPM to detect potential material events. This allows compliance teams to act before regulators step in, reducing the risk of regulatory penalties and protecting market integrity.
The Sebi Framework: What’s the Impact on Companies?
The Sebi framework requires large listed companies to integrate tech-based solutions and engage external agencies to track and identify news reported in both mainstream media and digital news sources. This means companies need to have a robust system in place to monitor and analyze news, identify potentially price-sensitive information, and respond quickly.
Market analysts believe that consistently monitoring stock price movements to determine if a material price movement has occurred — and scanning all mediums, including global sources — requires specialized expertise and infrastructure. Ashutosh, CEO of Kanalytics, said, "A good solution needs trained talent, data, and technology. Offer credible, actionable end-to-end solution. You flood clients with data empowerment on time within minutes."
"Krumour is built for compliance and tuned for intelligence with news from pre-market to post-market hours through a hybrid of human curation and algorithmic filters. No wonder over 30 of the top 150 listed companies trust us today," he added.
Why Companies Need to Stay Ahead of Regulatory Compliance?
The new Sebi framework aims to protect retail investors, who are often vulnerable to losses caused by share price volatility. Regulatory penalties can be severe, and companies that fail to comply with these norms can face fines and reputational damage. By staying ahead of regulatory compliance, companies can reduce the risk of penalties and protect their reputation.
In conclusion, the strengthening of norms on market rumour verification by Sebi is a significant development for Indian stock markets. Companies need to have a robust system in place to monitor and analyze news, identify potentially price-sensitive information, and respond quickly. Krumour, a platform developed by Kanalytics, is emerging as a go-to solution for companies to comply with these regulatory norms and stay ahead of regulatory penalties.
