SEBI Extends Timeline for Market Rumour Verification by Listed Entities

The Securities and Exchange Board of India (SEBI) has announced an extension of the timeline for the mandatory verification and confirmation, denial, or clarification of market rumours by Top 100 Listed Entities. The extension applies to entities based on their market capitalization and introduces a revised deadline for compliance.

Key Highlights:

1. Revised Implementation Dates:

   • For the top 100 listed entities by market capitalization, the proviso to Regulation 30(11) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which came into effect from October 1, 2023, will now be applicable from February 01, 2024.
   • In the case of the top 250 listed entities, the revised effective date for compliance is August 01, 2024.

2. Background:

   • The proviso to Regulation 30(11) mandates the top 100 listed entities to verify and confirm, deny, or clarify market rumours. This requirement was initially set to take effect from October 1, 2023.
   • Additionally, the obligation was slated to extend to the top 250 listed entities from April 1, 2024.

3. SEBI's Decision:

   • SEBI has exercised its regulatory authority to extend the implementation dates for the specified provisions.
   • The decision aims to provide listed entities with additional time to adhere to the requirements outlined in Regulation 30(11) of the LODR Regulations.

4. Circular Details:

   • The circular, issued by SEBI, formally communicates the extension of timelines for compliance with the specified regulations.
   • It is emphasized that the extension is in accordance with the powers conferred under Section 11 of the Securities and Exchange Board of India Act, 1992.

Conclusion: SEBI's decision to extend the timeline for market rumour verification reflects a consideration for listed entities, allowing them more time to effectively fulfill the regulatory obligations. Market participants are encouraged to stay informed about regulatory updates and ensure timely compliance with the revised deadlines.

For more details, the circular can be accessed on the official SEBI website under the "Legal -> Circulars" section.