A market rumour will now no longer remain just a rumour under latest SEBI order

In an article dated October 03, 2023, titled "Formation of Industry Standards Forum by SEBI - a pragmatic era in regulation implementation," it was highlighted that SEBI initiated a unique approach by forming an Industry Standards Forum (ISF) in collaboration with industry associations to devise implementation standards for regulations. \r

The ISF's first task was to create standards for rumour verification, initially set for October 1, 2023, but later postponed to June 1, 2024. SEBI recently issued a circular based on ISF deliberations, mandating listed entities to confirm, deny, or clarify market rumours upon significant price movement. \r

The ISF, in consultation with SEBI, developed guidance notes, outlining specific criteria for rumour verification, particularly for M&A transactions, and introduced a concept of unaffected price to mitigate unwarranted stock price movements. These measures aim to enhance transparency, curb speculation, and safeguard deals from rumours.