SEBI Extends Deadline for Listed Companies to Verify Market Rumours
The Securities and Exchange Board of India (SEBI), the Capital markets regulator, has given listed companies more time to verify market rumours.
SEBI rules said the top 100 listed companies in the stock market must respond to rumours starting on October 1, 2023. But now, they have until February 1, 2024, to do that. Once this rule comes into force, the top 100 listed entities by market capitalization will have to verify, confirm, deny, or clarify market rumours.
Right now, some large companies voluntarily share information with stock exchanges to clear up rumours about things like takeovers or new hires. This often relates to news that’s been reported in the regular news. If the company says the news is true, they also have to tell everyone where things stand with that news or event.
In March, SEBI approved a plan to check market rumours, aiming to strengthen corporate governance and disclosure rules. As of now, companies can choose whether to respond to rumours. This change was made to protect investors and maintain fairness. Some companies, though, felt it added to their compliance workload.