SEBI Introduces New Framework For Unaffected Price Determination And Market Rumour Verification.

Economy Business

To facilitate ease of business, and protect stock prices from volatility arising out of market rumours, the Securities and Exchanges Board of India (Sebi) has issued new guidelines in which a concept of ‘unaffected price’ is presented. In a circular on May 21, 2024, Sebi reiterated that listed companies must verify and respond to market rumours when stock price changes occur due to rumours.


      From June 1, 2024, Sebi mandated that the top 100 listed entities must verify market rumours when there are material changes in stock prices due to rumours. By December 1, 2024, the top 250 listed entities by market capitalisation should also follow suit.

     

     

 

     


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