The Delhi High Court has directed the Bombay Stock Exchange (BSE) to issue a clarification on its website to make it clear to investors that easemytrip.com is not liable for any action, in a plea filed by easemytrip.com seeking directions, to frame a comprehensive policy, to stem the flow of false information on stocks in social media. The plea also wants clarity on the manner in which the Stock Exchanges and Regulators ought to deal with intimations of solicitation, keeping in mind the impact on listed companies of such classifications on stock exchange websites.
A single-judge bench of Justice Rekha Palli issued notice to Central Government, Bombay Stock Exchange, Twitter, WhatsApp, Telegram and 7 other respondents. The Court further directed Twitter, WhatsApp and Telegram to block/remove the offending material within 48 hours, subject to the petitioner providing them with the URL.
Upon oral prayer of Advocate Hemant Shah, appearing on behalf of the petitioner, the court impleaded National Stock Exchange (NSE) and Security and Exchange Board of India (SEBI) as parties. The plea further sought:
- Direction to stop Hanif Kashambhai Shekh from leaving the country .
- Direction to BSE to remove the name of the petitioner from its website’s https://www.bseindia.com/attention_investors.aspx from the category “For Information List” and “Information list”.
- Direction to Ministry of Information and Technology, Twitter, WhatsApp and Telegram, to forthwith block, take down and remove the offending material specified in (i) this petition and (ii) the complaints made to the police on 18.09.2021.
- Quash the actions of BSE, in merely uploading information on the https://www.bseindia.com/attention_investors.aspx on intimation from investors without conducting any pre-decisional hearing of the aggrieved company.
‘Malicious social media disinformation campaign’
The petition avers that, a malicious social media disinformation campaign has been running against it, with the intent of stock manipulation, it is being spread as a “Fraud Alert”, exhorting people to exit the stock on opening on Monday, further making allegations that the petitioner is now in the list of “Unsolicited SMS” purportedly on the NSE website.
According to the petition, these allegations are evidently under a wide conspiracy to destabilize the stock, harm the Company, upon investigation it may transpire that there is a larger force trying to extort money from the petitioner under these false campaigns and it is a clear attempt at deliberate damage to stock, and also stock manipulation and constitute fraudulent and unfair practices barred by the SEBI.
The petition with regards to BSE states, on the link https://www.bseindia.com/attention_investors.aspx there is an excel sheet, uploaded under the heading “Information list – Scrips where SMSs were observed and liable for action as per various notices issued by the Exchange from time to time” where the name of the petitioner is appearing. The plea further states BSE did not give any opportunity of hearing to the petitioner nor did not seek any clarification from it.