SEBI Approves Uniform Approach For Market Rumour Verification

The Securities and Exchange Board of India on Friday cleared a proposal to have a uniform approach with respect to the verification of market rumours by equity-listed entities.

Under the proposal, objective and uniformly assessed criteria will be specified for rumour verification in terms of material price movement of equity shares of the listed entity.

'Considering the unaffected price for transactions wherever pricing norms have been prescribed under Sebi regulations provided that the rumour pertaining to such transaction has been confirmed within twenty-four hours from the trigger of material price movement,' Sebi said in a release.

Besides, promoters, directors, key managerial personnel and senior management have to provide timely responses to the listed entity for verifying market rumours.

'Unverified event or information reported in print or electronic media not to be considered as ‘generally available information’ under Sebi (Prohibition of Insider Trading) Regulations, 2015,' the release said.

The decision follows discussions with the Industry Standards Forum (ISF) that comprises three industry bodies -- Assocham, CII and Ficci.

Another proposal approved by the Sebi board is providing a framework for the issuance of subordinate units by privately placed InvITs (Infrastructure Investment Trusts).

'The objective of the framework for issuance of subordinate units is to enable usage of subordinate units to bridge the valuation gaps that may arise as a result of the difference in the valuation of an asset assessed by the sponsor (in its capacity of the asset seller) and the InvIT (in the capacity of the asset buyer).

'The framework is designed to also include risk mitigation measures in respect of such units,' the release said.

Also, the regulator has decided to recognise a stock exchange as a Research Analyst Administration and Supervisory Body (RAASB) and an Investment Advisers Administration and Supervisory Body (IAASB).

'As in the case of Investment Advisors, the RAASB framework will be fee neutral to the research analysts,' the release said.

In order to provide ease of doing business and ensure smooth operationalisation of the RAASB/IAASB framework and prevent disruption, the board has approved the deemed enlistment of existing registered research analysts and investment advisers.

Further, the timeline for mandatory applicability of listing norms for High-Value Debt Listed Entities (HVDLEs) has been extended till March 31, 2025.

The board also approved Sebi's budget for the financial year 2024-25.