BSE implements artificial intelligence mechanism for rumour detection


Author(s): 

Chandigarh, November 21, 2016: BSE, Asia’s first stock exchange and now world’s fastest exchange with the speed of 6 microseconds, has introduced a data analytics based systemic solution that relies on artificial intelligence mechanism to track news related to listed companies on digital media using social media like twitter etc.

The primary objective of verification is that the mechanism will detect and mitigate potential risks of market manipulation, rumour, and reduce information asymmetry arising from it on digital media platforms, including social media. It provides accurate information involving listed companies and BSE through the exchange website for the benefit of investors.

In order to further deepen its regulatory oversight to newer channels of communication in capital markets, BSE has adopted the data analytics based systemic solution. The solution employs an advanced level combination of statistical modeling and big data analytics.

BSE will continue to deploy and enhance advanced technological innovations to track social media. This would enhance market integrity, orderly functioning and investor protection in the Indian capital markets.

BSE currently offers a variety of state-of-the-art facilities which include a portal “Listing Center” enabling the listed companies to file their disclosures in an electronic manner via XBRL webpage. The online reporting was introduced in order to bring in more accuracy, efficiency and timeliness. It was in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Alerts generated by this social media solution will be closely monitored by BSE from the standpoint of material information and also vis-à-vis possible rumours appearing in various media including print and on-line channels as per SEBI regulations. Any differences observed therein are required to be explained by the companies, and their responses are then disseminated on the Exchange website for the benefit of investors and market participants for taking informed decisions.

In recent past, news media has undergone a sea of changes with digital media and social media becoming the frontline in news reporting or sharing information digitally for easier, faster, and wider reach. Further, more and more people are embracing social media for various purposes including for their financial planning.

On this background, any material news or rumour floating in the social media can have a very big potential for impacting the sentiments of the investing population which can further impact price / volumes of securities traded on exchange platforms.

As a regulated stock exchange, BSE continuously strives for bringing in various policy initiatives and measures in a pro-active manner and has, in the recent past, undertaken various regulatory policy and systemic measures for enhanced due-diligence, surveillance, corporate governance in the Indian capital markets to comply with SEBI regulations .

Date: 
Monday, November 21, 2016