SEBI Extends Timeline for Complying With Provisions Relating to Verification of Market Rumours By Listed Entities

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  • Last Updated on 30 January, 2024

Listed Entities

Circular No: SEBI/HO/CFD/CFD-PoD-2/P/CIR/2024/7, Dated: 25.01.2024

Earlier as per regulation 30(11), a listed entity may on its own initiative also, confirm or deny any reported event or information to stock exchange(s).

A new proviso had been inserted which stated that the top 100 listed entities wef. 01.10.2023 and subsequently the top 250 listed entities wef. 01.04.2024 are required to promptly confirm, deny or provide any clarification regarding reported events or information in the “mainstream media”.

Further, SEBI observed that in recent years, a growing influence is being noticed in not just print media, but also television and digital media. To stay contemporary, companies need to keep pace and ensure the verification of such rumours in a timely manner.

Reg. 30(11) of the LODR Regulations specifies that the top 100 listed entities and subsequently the top 250 listed entities by Market Capitalization are required to verify/confirm/deny or clarify market rumours from the date specified by SEBI.

In September 30, 2023, SEBI, through a Circular specified 01.02.2024 as the effective date for the top 100 listed entities and 01.08.2024 as the effective date for the next top 250 listed entities.

Now, the SEBI through a circular dated January 25, 2024, has extended the timeline for an effective date of implementation to 01.06.2024 for top 100 listed entities and 01.12.2024 for next top 250 listed entities.

Click Here To Read The Full Circular

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