Sebi notifies disclosure rules; extends timeline for confirmation or denial of market rumours
Sebi has notified new rules and extended the deadlines for mandatory confirmation or denial of market rumours by listed companies. This came after Securities and Exchange Board of India (Sebi), through a circular in late September, gave more time to listed companies to comply with the deadlines.
The deadline to confirm, deny, or clarify any market rumour reported in the mainstream media has been extended to February 1, 2024 for top 100 listed companies by market capitalisation, as per the circular.
Earlier, it was scheduled to come into force from October 1, this year.
Similarly, for top 250 listed entities, the rule will kick in on August 1, 2024, instead of April 1, 2024.
To give this effect, the regulator has amended the Listing Obligations and Disclosure Requirements (LODR) rules, according to a gazette notification issued on Monday.
The rule is aimed at strengthening the corporate governance of listed entities, it said.
Under the disclosure requirements, these companies will have to «confirm, deny or clarify any reported event or information in the mainstream media, which is not general in nature and which indicates that rumours of an impending specific material event» are circulating amongst the investing public within 24 hours from the reporting of the information.
Separately, the regulator has relaxed rules pertaining to enhanced qualification and experience requirements for investment advisers.
