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Approx. 170 instances (as per stock exchange disclosures) of rumour verification were done since June 1 when rumour verification became applicable to top 100 companies. Now the next 250 companies need to keep close watch on material price movements of their stock which triggers mandatory rumour verification. Robust framework in place for identification of rumours in mainstream media coupled with a tab on material price movement would help companies comply with this norm. Also these companies need to have in place an updated policy on leak of UPSI to guide employees on sharing of UPSI and process to highlight instances of leak of UPSI.

Rumour verification framework by SEBI helps achieve fair market price by eliminating price volatility created due to rumours and creating information symmetry. Failure to comply with rumour verification standards might inflict enforcement from SEBI and also impact credibility of market price of the stock.