When India Inc and investors were busy minting money on the bourses through 2007, it was also keeping market authorities busy scanning all price-moving rumours and pulling up concerned companies, which included big names like Reliance, Tata and even a host of state-run firms.
The country’s two leading stock exchanges — Bombay Stock Exchange and National Stock Exchange — issued over 250 notices to more than 100-listed entities over published media reports that had potential to affect share prices, but bourses were not informed in advance.These reports led to sharp surge in share prices of concerned companies, even though on most occasions, the companies downplayed the reports in their replies to bourses.
Stock exchanges doing duty in investors’ interest sought clarifications advising investors to keep away from rumours.
