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SEBI - Highlights / Catch Notes

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The circular provides a framework for determining the unaffected ...


SEBI Introduces Framework for Unaffected Price Calculation Post-Market Rumors Using Adjusted VWAP for Listed Entities.

May 25, 2024

Circulars     SEBI

The circular provides a framework for determining the unaffected price for transactions following confirmation of market rumors, as required by Regulation 30(11) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The unaffected price is to be considered for transactions subject to pricing norms, excluding the impact of the rumor and price movement. The calculation involves adjusting the volume weighted average price (VWAP) based on the daily price variations. The circular applies to top listed entities and is enforceable by stock exchanges. It is issued u/s 11(1) and 11A of the SEBI Act, 1992, and Regulation 101 of LODR Regulations. Compliance is mandatory for listed entities, with the circular effective from specified dates.

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