SEBI vide circular dated May 21, has issued framework for considering unaffected price for transactions upon confirmation of market rumour. The LODR regulations mandates that top 100 listed entities are required to verify market rumours regarding a transaction, upon material price movement. The unaffected price shall be considered for transactions on which pricing norms, 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 in this circular 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.
