SEBI has issued Consultation Paper on Amendments to SEBI Regulations with respect to Verification of Market Rumors to invite comments on following proposals:
- Whether ‘materiality’ for the purpose of rumour verification requirement should be considered in terms ofmaterial price movement?
- Whether you agree with the proposed framework for material price movement as given in Annexure B?
- Whether you agree that rumour shall be required to be verified and confirmed, denied or clarified within 24 hours from material price movement?
- Whether the unaffected price should be considered when the listed entity confirms the market rumour due to material price movement?
- Whether you agree that the unaffected price should be applicable for 60 days or 180 days, as the case may be (from the date of confirmation of the market rumour till the ‘relevant date’ under the existing regulations?
- Whether promoters, directors, KMP and senior management should be mandated to provide adequate, accurate and timely response to queries raised or explanation sought by the listed entityin order to ensure compliance with the requirements under Regulation 30(11)of LODR Regulations?
- In case certain information is classified as UPSI by the listed entity and market rumour pertaining to that information is not verified by the listed entity, then whether such information should be continued to be treated as UPSI and not ‘generally available’ information?
The comments or suggestions, along with rationale, may be submitted by any of the following modes latest by January 18, 2024, preferably through online mode at the following or alternately, by email to consultationcfd@sebi.gov.in.
