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SEBI fines BSE ₹25L for unequal access to corporate disclosures
26 Jun 2025

The Securities and Exchange Board of India (SEBI) has imposed a fine of ₹25 lakh on the Bombay Stock Exchange (BSE).

The penalty was levied after an inspection from February 2021 to September 2022 revealed that BSE had failed to provide equal access to corporate disclosures for all stakeholders.

The regulator also found that BSE did not take action against brokers with frequent modifications during trades.

Early access to corporate announcements for paid clients
System breach

The SEBI order, spanning 45 pages, revealed that BSE's system architecture gave paid clients and its internal listing compliance monitoring (LCM) team early access to corporate announcements.

This was before the information was made public on its website.

The regulator found this as a violation of norms and observed that the data dissemination process lacked safeguards for simultaneous and equal access for all stakeholders.

This is essential for ensuring fair markets and avoiding unequal access to information.

Violation of Regulation 39(3) of Securities Contracts regulations
Regulatory non-compliance

SEBI concluded that BSE violated Regulation 39(3) of the Securities Contracts (Regulation) SECC (Stock Exchange and Clearing Corporations) Regulations, 2018.

The regulation mandates stock exchanges to ensure fair and transparent access for all users.

The regulator also noted that BSE did not set up a really simple syndication (RSS) feed, which could have reduced the risk of unequal access to corporate disclosures.

Disciplinary action not taken against brokers with frequent modifications
Oversight issues

SEBI observed that BSE only created a time gap to address the issue after inspection highlighted lapses.

The regulator also flagged major shortcomings in BSE's monitoring of client code modifications, which are allowed only in case of genuine errors.

It found that BSE did not take disciplinary action against brokers with frequent modifications and failed to monitor 'error accounts' adequately.

Stock exchanges are 1st layer of oversight: SEBI
Oversight responsibility

In the order, SEBI's Quasi Judicial Authority Santosh Shukla stressed the importance of stock exchanges as 'the first layer of oversight' while dealing with material price-sensitive information about listed companies and their securities.

He said that as a premier recognized stock exchange, BSE should have internal controls to manage such corporate announcements and ensure compliance with its obligations.