Sebi extends deadline for listed cos to confirm or deny market rumours

Capital markets regulator Sebi has extended the deadline for mandatory confirmation or denial of market rumours by listed companies. The deadline has been extended for the top 100 listed companies by market capitalisation to February 1, 2024, from October 1 this year at present, according to the latest circular by the Securities and Exchange Board of India (Sebi).

Similarly, for the top 250 listed entities, the rule will kick in on August 1, 2024, from the current requirement of April 1, 2024.

The rule is aimed at strengthening the corporate governance of listed entities.

"It has been decided to extend the effective date of implementation of...the LODR (Listing Obligations and Disclosure Requirements) rules for top 100 listed companies by market capitalisation to February 1, 2024, and for top 250 listed companies by market capitalisation to August 1, 2024," Sebi said.

Earlier in June, Sebi notified rules asking these listed companies by market capitalisation to confirm, deny, or clarify any market rumour reported in the mainstream media.

As per 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.