 "BSE NSE, Bull Market, Indian Stock Market")
The market regulator has also set norms for defining price movements, the stage of the reported transaction and a mechanism to factor in the unaffected price for transactions. Photographer: Dhiraj Singh/Bloomberg
Following the rumour-checking regulations announced by the market regulator, several listed companies have issued clarifications on media reports in the last fortnight. The norms came into effect for the top 100 listed companies from June 1. Since then, companies like Life Insurance Corporation of India (LIC), Tata Steel, Bajaj Finance and Saurashtra Cement have issued clarifications on media reports in the first fortnight of the new norm coming into effect.
While Bajaj Finance, which was the first to issue a clarification under the norms, confirmed its plan for a public offer of Bajaj Housing Finance, LIC said it has not floated any formal proposal to enter the health insurance market “through” a private health insurer.
Many other companies have voluntarily provided details. For example, restaurant aggregator Zomato confirmed that it is in talks with fintech player Paytm for its cinema and ticketing businesses.
According to the rules notified by the Securities and Exchange Board of India (Sebi), companies must verify, deny or clarify information released by the media that triggers significant price movements in stocks. The market regulator has also laid down norms to define price movements, the stage of the reported transaction and a mechanism to consider the unaffected price for transactions.
However, exchanges continue to seek clarification from companies beyond the top 100 on information that is driving increased volumes.
First published: June 17, 2024 | 8:01 p.m. IST