Stock market major BSE on Monday said it has launched an artificial intelligence mechanism to track “news related to listed companies” on digital media. According to BSE, the artificial intelligence mechanism based on a systemic solution has been envisaged to deepen its regulatory oversight on newer channels of communication. “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,” the BSE said in a statement.
“It provides accurate information involving listed companies and BSE through the exchange website for the benefit of investors.” According to the regulated stock exchange, 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,” the statement said.
As per the BSE, 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,” the statement said.
The BSE elaborated that in the 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,” the statement added.
“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.”