Such disclosures should be released in a press release, press conference or corporate Web site. This is indeed good news for individuals and institutional investors, who have been deprived of a level playing ground. With the regulation in place, they will be having unprecedented access to information such as profit warnings, which end up moving stock prices up or down.

Some forward looking companies have already started changing the way they disseminate company information. Simultaneous disclosure of information to all market participants is likely to add a keen edge to volatility. Especially when an information is damaging. These information could prove to be such valuable trigger points to make profits or even cut losses. In India, Sebi is reported to be working towards bringing the disclosure norms on similar grounds.

Information disclosure will affect not only technology stocks but also all stocks across-the-board. However, since technology stocks are being played upon as momentum stocks, the impact will be seen here the most. One, however, has to watch the evolving scenario, whether everything is indeed on level ground for all players in India.

With the dawn of this new regulation in the US, companies are likely to move away from the practice of updating the research houses on monthly updates. Disclosures may come through only towards the end of a quarter. This process will actually lead to more volatility, but is inescapable.

In the earlier format, while companies updated research houses on a monthly or event basis, they were still free to revise their estimates in the reverse direction towards end of the quarter if there was a change in the business circumstances.

But even here, in as much as they share their confidence with the research houses and analysts, there was no hue and cry raised.

But all this will now come to a halt. This development will also lead analysts to be more conservative hereafter in their forecast. Also they will be forced to do more grass-roots research, like contacting companies customers, raw material supplier, bankers and the like.

And no more you need to hear a whisper from one of your friendly contacts in a research house. The common investor may be eagerly looking forward to see this new scheme enacted effectively and quickly in India too.