The Securities and Exchange Board of India (SEBI) on May 21, 2024, issued the framework for considering unaffected prices for transactions upon confirmation of a market rumour.
It is stated that the listed entity is required to verify market rumours, upon material price movement. The stock exchanges shall issue the framework for material price movement on their websites.
It is also stated that the 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 transaction 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. Accordingly, the framework for considering the unaffected price is placed as ANNEXURE to this circular and the same shall apply to the top 100 listed entities with effect from June 01, 2024, and to the top 250 listed entities (i.e., the next top 150) with effect from December 01, 2024.
Kindly find the Annexure attached to the document below.
[Circular No. SEBI/HO/CFD/CFD-PoD-2/P/CIR/2024/51]
