Sebi may ease rules for rumour verification
NEW DELHI : Market regulator Securities and Exchange Board of India (Sebi) on Thursday said it might ease the proposed rumour verification norms applicable for the top 100 listed companies, after several firms raised concerns. In a fresh discussion paper on Thursday, Sebi has proposed changes to rules for verification of market rumours, tweaking of a 24-hour timeline for verification, and proposed some changes in rules regarding pricing of preferential issuances, buybacks and deals.
Initially slated to become effective from 1 October, the implementation of the rules was deferred after several listed companies raised concerns about certain aspects. For confirming or denying rumours about material events, Sebi proposed that the “timeline for verifying market rumour shall be within 24 hours of material price movement instead of within 24 hours of reporting in the mainstream media as per the existing rumour verification requirement".
For deal-related news, the day a rumour is verified would be taken as the cut-off date for price calculation. And the trading session in which it is verified shall be excluded from the calculation.Milestone Alert!
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