SEBI enhances regulatory compliance, KRUMOUR will ease corporate’s task
SEBI’s Regulation 30 (11) comes into effect
In May 2024, the Securities and Exchange Board of India (SEBI) notified a significant amendment to the Listing Obligations and Disclosure Requirements (LODR) under Regulation 30(11). It mandates that if there is material price movement (MPM), then a listed company must verify, deny, or clarify market rumours, within 24 hours of MPM.
The aim is to enhance transparency and safeguard investors from potential market manipulation or misinformation. The top 100 listed entities ranked by market cap, began verifying market rumours on June 1 this year, while an additional 150 listed entities will follow suit from 1st December 2024. This move is seen as a major step forward in protecting retail investors, who often suffer losses due to share price volatility caused by unfounded market rumours.
Market rumours can trigger fluctuations in stock prices and impact retail investors’ confidence. SEBI’s approach to curb this effect is drawn from the proactive measures taken by regulators across the world such as the NYSE, UK FCA, European Union, and Hong Kong.
Industry Standards Note elaborates ambit of media universe to track rumours
ASSOCHAM, CII, and FICCI jointly issued the Industry Standard Note (ISN) which provides a deep dive of the compliance guidelines mandated by regulation 30 (11). The ISN entails two key parameters i.e., the wide universe of mainstream media and the type of market rumours found therein.
It becomes an onerous task for companies to consistently monitor stock price movements to determine if a “material price movement” has occurred, and simultaneously scan both domestic and international mainstream media for rumours. The 24-hour window can be insufficient for a company to scan mainstream media, identify rumours and release its comments. Given the stringent timeframe, the companies would require skilled experts with high acumen of financial news and technology to track MPM.
KRUMOUR helps your company to comply with regulation 30 (11)
Media Presence
Key publications such as The Economic Times, The Hindu Business Line, Financial Express have cited how our solution can enable compliance team in adhering to SEBI LODR 30 (11).
Why Kanalytics is your best bet for this service?
Best service quality: KRUMOUR is the highest quality service which is preferred by top 100 listed entities
Customized solution: Our solution tracks specific news themes as per SEBI mandate, such as M&A and non-M&A transactions relevant to your company
Diverse media universe: We can be your one-stop solution for tracking news mediums such as Print, Web, TV, and social media handles of the news sources
Linguistic expertise: Our in-house content intelligence team are specialized across 13 major Indian languages and Mandarin
Get in Touch
Allow us to help your organization comply with SEBI’s rumour verification regulations. Please email us at connect@kanalytics.in