New Delhi, Dec 29: SEBI has floated a consultation to seek comments on a proposal to keep material price movement as the criteria to verify market rumours instead of material event in terms of Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations).It is also considering a mechanism to ensure that unaffected price is considered with respect to transactions relating to the securities of a listed entity upon confirmation of market rumour.
SEBI is also considering an obligation on promoters, directors, key managerial personnel (KMP) and senior management to provide adequate, accurate and timely response to the queries raised or explanation sought in respect of market rumours by the listed entity in order to ensure compliance with Regulation 30(11) of LODR Regulations.
The obligation to disclose material events or information and market rumours is cast upon the listed entity.
