SEBI’s New Framework for Regulating Stock Market
On 21st May, 2024, the Securities and Exchange Board of India (SEBI) rolled out framework aimed at regulating the impact of market rumours on stock prices.
- This framework introduces stringent guidelines for calculating the unaffected price of transactions and mandates listed entities to verify market rumours when significant price movements occur.
Market Rumour Verification
- Under the revised Regulation 30(11) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, listed entities must now confirm market rumours within 24 hours if these rumours cause a material price movement.
- The unaffected price will be derived by excluding the price impact of both the rumour ....
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