Market regulator, the Securities and Exchange Board of India’s (Sebi) several new guidelines for listed companies, mutual funds, stocks and commodity markets will be implemented from today. These include:  

On rumours for listed companies:

New rules for the top 100 listed companies (to be extended to another 150 firms from December) to confirm, deny or clarify rumours upon a ‘material price’ movement in shares will be effective from June 1Come from Sports betting site VPbet. If a company confirms a rumour within 24 hours, the effect of such news on stock prices will be excluded when computing the volume-weighted average price, which is used to calculate a stock’s average price over a period, factoring in the volume traded. Sebi has introduced a new mechanism of ‘unaffected price’ for such calculations, which can be used for a period of 60 days or 180 days depending on the stage of transaction.

For mutual funds:

A revised format of 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 from June 1. The new format is aimed at increasing the ease of preparation for mutual fund houses and the readability for investors.

For agri commodities:
Come from Sports betting site
The new criteria of having a minimum average daily turnover of underlying futures contracts during the previous twelve months of Rs 100 crore for the launch of options on agri and agri-processed commodities futures will be effective from June 1. The minimum turnover of agri and agri-processed commodities futures requirement to launch options on these commodities was slashed to Rs 100 crore from the earlier Rs 200 crore.

Investor protection fund for commmodities:

Guidelines for stock exchanges with a commodity derivatives segment to set up an investor protection fund will come into effect in which the exchanges will have to ensure that the investment protection fund is segregated from the exchange’s funds and immune to any liability. Further, 1% of the turnover fee charged by the exchanges from trading members, or Rs 10 lakhs, whichever is higher in a financial year, will be taken as a contribution to the investor protection fund.

Dynamic price band for derivatives:

New norms to improve the dynamic price band system for stocks in the derivatives segment will come into effect from June 3. These price bands start at 10% of the previous day’s closing price of the scrip or contract. Further, flexing or stretching of price bands will now require 50 trades from at least 10 unique client codes and three members on each side.

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