SEBI announces new code of conduct

• The Securities and Exchange Board of India (SEBI) asked all capital market intermediaries to put in place proper internal code of conduct and controls to check unauthorised news related to various scrips circulated in blogs, chat forums and e-mails.
• "Employees should be directed that any market related news received by them either in their official mail/personal mail/blog or in any other manner, should be forwarded only after the same has been seen and approved by the intermediary's compliance officer concerned," SEBI said in a circular to all market participants.
• "If an employee fails to do so, he/she shall be deemed to have violated the various provisions contained in SEBI Act/Rules/Regulations and shall be liable for action. The compliance officer shall also be held liable for breach of duty in this regard," it warned.
• Stating that this circular has been issued by SEBI in the interest of the securities market, the capital market regulator has observed that unauthenticated news related to various scrips is circulated in blogs, chat forums and e-mail by employees of broking houses and other intermediaries without adequate caution as mandated in the code of conduct for stock brokers.