Sebi’s rule on analyst calls to help level the access to information

Niche social media platforms such as Telegram and Signal have emerged as new sources of information on companies and stocks — leaving the regulator to play catch-up on sharing of price-sensitive information on these channels.

Synopsis

Companies took any number of days to upload the transcript of such calls, though the information shared in the call was factored into the company’s stock price immediately. Prompt dissemination will make the information less exclusive and help the investors to reduce dependence on secondary sources.

ET Intelligence Group: In a move to reduce information asymmetry, the Securities and Exchange Board of India’s (Sebi) latest stipulation is that companies publish the audio/video recording of analyst meetings within 24 hours or before the market opens, whichever is earlier, on their websites and to stock exchanges. The companies also have to upload a written transcript of the meeting within five days.

This is an incremental step in the right

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