Sebi bars exchanges from sponsoring media programmes

Asks exchanges to ensure that even the employees of exchanges are not associated with any such marketing activities

The Securities and Exchange Board of India (Sebi) has barred exchanges from sponsoring any programmes run by media channels, which directly or indirectly spread sensitive information.

The guideline comes at a time when many programmes are sponsored by the National Stock Exchange, BSE, Multi Commodity Exchange, National Commodity or Derivatives Exchange in the name of investor awareness.

Sebi asked exchanges to ensure even the employees of exchanges are not associated with any such marketing activities. It has directed exchanges to lay down a suitable code of conduct for their executives and other staff in this regard.

“The exchanges being neutral platforms, either as an institution or through their functionaries, shall not sponsor or associate themselves in any manner with programmes/seminars/workshops/activities, etc at various fora including but not limited to TV/radio/social networks/websites or any other media in which the discussions/suggestions are related to the price behaviour, price outlook, trading strategy, buy/sell recommendations, or similar subjects related to commodity derivatives,” said a Sebi circular.

The markets regulator has directed exchanges to bring amendments to the relevant laws accordingly. Exchanges were also asked to notify the new circular and disseminate the same on their website. They also have to communicate the status of the implementation of the provisions to Sebi in a given period of time.

The provisions of this circular shall come into force from the date of the circular in supersession of all earlier directives issued by the erstwhile Forward Markets Commission with regard to matters related to ‘programmes sponsored by the exchanges’, noted Sebi.