Context:
The Securities and Exchange Board of India (SEBI) has penalized BSE Limited ₹25 lakh for multiple regulatory violations identified during a detailed inspection.
Key Highlights
- Penalty Amount: ₹25 lakh
- Regulatory Body: SEBI (Securities and Exchange Board of India)
- Entity Penalized: Bombay Stock Exchange (BSE) Limited
- Inspection Period: February 2021 to September 2022
- Deadline for Payment: BSE must pay the penalty within 45 days of receiving the SEBI order.
Major Violations Identified by SEBI
- Premature Access to Price-Sensitive Information:
SEBI found that BSE’s system architecture allowed both:- Its internal Listing Compliance Monitoring (LCM) team, and
- Paid subscribers
to access corporate announcements before they were made public on the BSE website.
- Weak Supervision of Broker Trades:
Inadequate surveillance and enforcement of trading rules. - Delayed Regulatory Action:
Laxity in initiating timely enforcement action on violations.
About BSE
- Full Name: Bombay Stock Exchange
- Established: 1875
- Headquarters: Mumbai, Maharashtra
- Distinction: Oldest stock exchange in Asia
