SEBI's New Regulations Effective from June
Starting June 1, new SEBI regulations require the top 100 listed companies to confirm, deny, or clarify rumours following significant price movements in their shares, with this rule extending to an additional 150 companies in December. SEBI has also implemented several new guidelines for listed companies, mutual funds, stocks, and commodity markets.
Admin
Jun 5, 2024
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Rumours for listed companies:
Starting June 1, SEBI mandates the top 100 listed companies to confirm, deny, or clarify rumours following significant share price movements, with this rule expanding to 150 more companies in December. If a company confirms a rumour within 24 hours, the resulting price impact will be excluded from the volume-weighted average price used for stock price calculations. SEBI's new 'unaffected price' mechanism, applicable for 60 or 180 days, depending on the transaction stage, will be used for these calculations.
For Mutual Funds:
Starting June 1, a revised format for Mutual Fund scheme offer documents—Scheme Information Document (SID), Key Information Memorandum (KIM), and Statement of Additional Information (SAI)—issued by SEBI in November will be implemented. This new format is designed to make it easier for mutual fund houses to prepare these documents and to enhance readability for investors.
For agri-commodities:
Effective June 1, the minimum average daily turnover requirement for launching options on agricultural and agri-processed commodities futures will be reduced to Rs 100 crore from the previous Rs 200 crore. This new criterion considers the turnover of underlying futures contracts over the past twelve months.
Investor protection fund for commodities:
Starting June 1, stock exchanges with a commodity derivatives segment must establish an investor protection fund, ensuring it is separate from the exchange's funds and protected from liabilities. Exchanges will contribute 1% of the turnover fee charged to trading members, or Rs 10 lakhs, whichever is higher, annually to this fund.
Dynamic price bands for Derivatives:
Effective June 3, new norms will enhance the dynamic price band system for stocks in the derivatives segment. These bands will begin at 10% of the previous day's closing price. Additionally, at least 50 trades must involve 10 unique client codes and three members on each side to adjust these bands.
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