M&A Experts Welcome SEBI Norms to Protect Buyouts from Rumor-Driven Price Surges: Jidesh Kumar Quoted in Moneycontrol.com Article

Posted On - 23 May, 2024 • By - King Stubb & Kasiva

In a significant development for the financial markets, merger and acquisition (M&A) experts are applauding the Securities and Exchange Board of India’s (SEBI) newly introduced regulations designed to safeguard buyouts from rumor-induced price volatility. These regulations are set to create a more stable and reflective market environment, mitigating the adverse effects of speculation on stock prices.

Jidesh Kumar emphasized the market’s tendency to react swiftly to news or rumors about potential mergers or acquisitions. Such reactions often lead to increased trading volumes and substantial price fluctuations, which do not always reflect the underlying value of the companies involved. In a recent article by Moneycontrol.com, Jidesh Kumar elaborated on this issue, pointing out that these rapid market movements can create challenges for both investors and companies alike.

“Market participants often react quickly to any news or speculation about potential mergers or acquisitions, which can lead to increased trading volumes and significant price fluctuations,” he said. Read full article: https://www.moneycontrol.com/news/business/markets/ma-experts-welcome-sebi-norms-that-protects-buyouts-from-rumour-driven-price-surges-12729548.html