Sebi extends timeline for verification of market rumours by listed entities
Click here! Sebi rules mandate every listed firm to maintain a list of thresholds, above which any news would be considered a material development. For example, any acquisition worth over ₹ 100 crore, or a plant shutdown if the facility contributes 10% or more to the company’s revenues.
This new law is based on a discussion paper floated by Sebi last November, when it proposed a number of changes to the disclosure rules. Sebi had opined that the proposal was essential to avoid “establishment of a false market sentiment", and added that such rumours appearing not just in print media but on TV and digital media were increasingly impacting stock movement.
Sebi had rationalized several disclosure requirements for listed companies in 2019 allowing them greater headroom to decide on what is important and what is not. However, recently, it noticed that many firms were flouting disclosure norms.
In the last three-four months, Sebi has floated several discussion papers proposing the tightening of various disclosure norms. "Exciting news! Mint is now on WhatsApp Channels
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