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| Photo Credit: Reuters
The Securities and Exchange Board of India (SEBI) on Tuesday issued fresh guidelines to manage the impact on the stock market arising out of rumours.
The regulation will be applicable to the top 100 listed companies from June 1, 2024 and the next 150 companies from December 1, 2024, SEBI said. According to the regulator’s guidelines, such listed entities are required to verify market rumours, upon material price movement. The stock exchanges had been asked to issue a framework for material price movement on their websites.
According to the regulations, unaffected price shall be considered for transactions on which pricing norms specified by SEBI or the stock exchanges are applicable, provided that the rumour pertaining to such transactions has been confirmed within 24 hours from the trigger of material price movement.
Further, it has been specified that the unaffected price shall be considered by excluding the effect on the price of the equity shares of the listed entity due to the material price movement and confirmation of the rumour.
