Consider the following statements with reference to the New Framework For Unaffected Price:1. It was introduced by the Reserve Bank of India (RBI).2. It aims to maintain a reasonable price for a scrip, excluding any undesired influence before the rumour is confirmed or refuted.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'B'. Can you explain this answer?

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Consider the following statements with reference to the New Framework For Unaffected Price:

1. It was introduced by the Reserve Bank of India (RBI).

2. It aims to maintain a reasonable price for a scrip, excluding any undesired influence before the rumour is confirmed or refuted.

Which of the statements given above is/are correct?

a)
1 only
b)
2 only
c)
Both 1 and 2
d)
Neither 1 nor 2

Correct answer is option 'B'. Can you explain this answer?

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Consider the following statements with reference to the New Framework ...

To tackle any impact on the price of a scrip because of a market rumour, the Securities and Exchange Board of India (SEBI) introduced a framework centred around its ‘unaffected price.’

About New Framework

The Securities and Exchange Board of India (SEBI) introduced a framework centred around the concept of "unaffected price" to tackle the impact of market rumours on stock prices.
Purpose: The framework aims to maintain a reasonable price for a scrip, excluding any undesired influence before the rumour is confirmed or refuted, thereby helping both companies and investors.
Implementation: The framework will be implemented in phases:
- Phase 1 (June 1): Applies to the top 100 listed entities.
- Phase 2 (December 1): Applies to the top 250 listed entities.
How "Unaffected Price" works: The "unaffected price" is the price of the scrip before a particular rumour emerged and became public. This mechanism ensures a fair price discovery process, protecting the interests of market participants.
Benefits: The framework is expected to:
- Improve market integrity by promoting transparency and faster responses from listed companies.
- Enhance confidence among investors.
- Reduce speculative activity.
- Ensure a level playing field for buybacks, mergers and acquisitions, and other transactions.
Timeframe: The "unaffected price" must be determined within 24 hours of any material price movement excluding the rumour.

Hence only statement 2 is correct.

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Consider the following statements with reference to the New Framework For Unaffected Price:1. It was introduced by the Reserve Bank of India (RBI).2. It aims to maintain a reasonable price for a scrip, excluding any undesired influence before the rumour is confirmed or refuted.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'B'. Can you explain this answer?

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