Sebi Extends Deadline for Mandatory Confirmation or Denial of Market Rumours

The Securities and Exchange Board of India (Sebi) has extended the deadline for the implementation of rules related to mandatory confirmation or denial of market rumors by the top 100 listed companies. The new deadline for the top 100 listed companies by market capitalization is June 1, 2024, instead of the previous deadline of February 1, 2024. For the top 250 listed entities, the rule will come into effect on December 1, 2024, instead of the earlier requirement of August 1, 2024.

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Reason for Extension

Sebi stated that the decision to extend the timeline for implementing the Listing Obligations and Disclosure Requirements (LODR) rules was taken due to ongoing industry-standard finalization and required amendments to market norms. The rule aims to strengthen the corporate governance of listed entities.

Background

In June 2022, Sebi notified rules requiring listed companies by market capitalization to confirm, deny, or clarify any market rumor reported in the mainstream media. As per the disclosure requirements, these companies must confirm, deny, or clarify any reported event or information in the mainstream media that is not general in nature and indicates that rumors of an impending specific material event are circulating among the investing public within 24 hours of reporting the information.

The extension of the deadline for implementing the LODR rules provides listed companies with more time to comply with the requirements and ensure effective corporate governance practices.