Market

SEBI Extends Timeline for Listed Companies to Confirm or Deny Market Rumours

In an effort to streamline disclosure requirements, markets regulator the Securities Exchange Board of India (SEBI) has notified new rules and extended the deadlines for mandatory confirmation or denial of market rumours by listed companies. 

Earlier, through a circular in September 2023, the markets regulator had given additional time to listed companies to comply with the deadlines. 

According to the circular, the deadline to confirm, deny, or clarify any market rumour reported in the mainstream media has been extended to February 1, 2024, for the top 100 listed companies by Market Capitalisation (m-cap). Previously, it was scheduled to come into effect from October 1, 2023. 

At the same time, in the case of the top 250 listed entities, the rule will be effective from  August 1, 2024 onwards, instead of April 1, 2024. Furthermore, SEBI has introduced amendments to the Listing Obligations and Disclosure Requirements (LODR) rules. The core idea of the rule is to strengthen the corporate governance of listed entities. 

As per the disclosure requirements, such companies are required to confirm, deny or clarify any reported event or information in the mainstream media that is not general in nature and which indicates that rumours of an impending specific material event are circulating amid the investing public within a timeframe of 24 hours from the reporting of the information.

Similarly, SEBI has relaxed rules related to enhanced qualification and experience requirements for investment advisors.

The move was initiated after SEBI’s board in September 2023 gave a go-ahead to a proposal to extend the timeline by two years till September 2025 for compliance with enhanced qualification and experience requirements for investment advisors. 

As per this, individual investment advisors, principal officers of non-individual investment advisers, and persons associated with investment advice are mandated to comply with enhanced qualification and experience requirements.

Share

Recent Posts

Mutual Funds: SIP Inflows Breach Rs 19,000-Crore Mark for the First Time in February ’24

The systematic investment plan (SIP) contribution in February 2024 has crossed a new milestone. The monthly contribution tipped at Rs…

10 months ago

Income-Tax Return: A Brief Note on Annual Information Statement (AIS)

The Income-Tax (I-T) Department has directed taxpayers to access the Annual Information Statement (AIS) via the e-filing official portal and…

10 months ago

Mutual Funds: All About SIP and Market Fluctuations

Considering the vagaries of the stock market, investors often ponder over reevaluating their strategies. Whether to continue to remain invested…

10 months ago

Income-Tax Saving Through Strategic Life Insurance Planning

Financial planning is beyond just investing wisely to save on taxes; it's also related to protecting oneself and one's loved…

10 months ago

Income-Tax Return: Here’s a Note on Tax-Saving Avenues

A salaried individual earning up to Rs 5-15 lakh as net salary on an annual basis must first take stock…

10 months ago

A Quick Take on Equity-Linked Savings Scheme

Equity-linked savings schemes (ELSS), also referred to as tax-saving schemes, are equity funds that invest a significant portion of their…

10 months ago