New Delhi, July 31: Worried over sharp volatility in stock markets, the cabinet secretariat has warned ministries and PSUs against divulging information that could prove to be price sensitive to the related shares and have impact on disinvestment process saying it would be viewed "adversely". The direction comes amid reports that leaking of information relating to disinvestment programme of some key PSUs like Hindustan Petroleum and Bharat Petroleum had led to spurt in prices of their stocks.
In a letter to various ministries, R Poornalingam, additional secretary in the cabinet secretariat said, "There have been instances where statements made by unauthorised personnel to the media have resulted in erratic and volatile price movements of the scrips.”
"... It has come to the knowledge of the government that in a particular instance the statements made by a chief executive of the PSUs to the media resulted in extreme volatility of the scrip," he said.

Taking strong exception to the announcements made by executives and leaking of information by unauthorised personnel even before informing the stock exchanges, Poornalingam said, "Any breach of this practice will be viewed adversely by the government."
Fuelled by reports of setting up of data room, time table for due-diligence and possible dates for inviting price bids, HPCL scrip had shot up to over Rs 370 from about Rs 315 only during this month.
Bureau Report