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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.

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