July 04, 2025 08:19 pm (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Vijay named as TVK's CM face for upcoming Tamil Nadu polls | India says only Dalai Lama can decide his successor, China responds with warning | Pakistan had 30-45 seconds to respond: Shehbaz Sharif's aide on India's BrahMos attack during Op. Sindoor | Calcutta HC orders closure of all Bengal college union rooms until fresh elections in wake of Kolkata rape case | ‘We will cross that bridge when we come to it’: Jaishankar’s response on US bill proposing 500% tariffs | 'We slapped because of his attitude': MNS worker justifies assault on shopkeeper for not speaking Marathi | 'Marathi will have to be spoken in Maharashtra': State minister after MNS workers' assault on shopkeeper | PM Modi conferred with 'The Officer of the Order of the Star of Ghana' | Three Indian nationals abducted in Al-Qaeda-linked group's attack in Mali, MEA expresses 'deep concern' | Pune woman raped by man posing as delivery boy, police probe on
SEBI
Image Credit: File image by Jimmy Vikas via Wikimedia Commons

SEBI issues framework to manage stock impact emerging from market rumours

| @indiablooms | May 22, 2024, at 07:01 pm

New Delhi/IBNS: The Securities and Exchange Board of India (SEBI) has issued fresh guidelines to manage the stock market impact arising out of market impacts, according to reports.

As per a circular dated May 21, the stock market regulator's purpose of issuing the new framework is to exclude price disruption caused by rumours while arriving at the price for an acquisition.

SEBI will introduce a concept of unaffected price in order to mitigate the artificial stock price fluctuations, and the regulations will be applicable to the top 100 listed entities with effect from June 1, 2024, and on the next 150 entities beginning from December this year, reports said.

SEBI says the regulation requires the listed entity to verify market rumours once there has been a material price movement.

"Unaffected price shall be considered for transactions on which pricing norms specified by SEBI or the stock exchanges are applicable, provided the rumour pertaining to such transaction has been confirmed within 24 hours from the trigger of material price movement.," according to the SEBI circular.

Unaffected price implies the share price level that would have existed if there was no rumour in the market, as per SEBI.

"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," SEBI's circular read.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.
Related Videos
RBI announces repo rate cut Jun 06, 2025, at 10:51 am
FM Nirmala Sitharaman presents Budget 2025 Feb 01, 2025, at 03:45 pm
Nirmala Sitharaman on Budget 2024 Jul 23, 2024, at 09:30 pm
Close menu