Introduction: The Securities and Exchange Board of India (SEBI) has issued a crucial circular, SEBI/HO/CFD/CFD-PoD-2/P/CIR/2024/7, on January 25, 2024. This circular addresses the extension of the timeline for the verification of market rumors by listed entities, impacting the top 100 and top 250 listed entities by market capitalization.
Detailed Analysis:
1. Regulation Proviso and Previous Circular: The circular refers to the proviso to Regulation 30(11) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. It mandates the verification and confirmation, denial, or clarification of market rumors. The previous circular, SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/162 dated September 30, 2023, brought this provision into effect for the top 100 listed entities from February 1, 2024, and for the top 250 listed entities from August 1.
2. Industry Standards and Amendments: The rationale for the timeline extension is rooted in the ongoing finalization of industry standards and the necessity for certain amendments to the LODR Regulations to effectively implement the proviso to regulation 30(11). This implies that the regulatory landscape is evolving, and stakeholders need time to align with the impending changes.
3. Revised Implementation Dates: The circular stipulates the revised implementation dates for the aforementioned provision. For the top 100 listed entities, the new deadline is June 1, 2024, and for the top 250 listed entities, it is extended to December 1, 2024. This extension provides a grace period for entities to adjust their internal processes and systems accordingly.
4. SEBI’s Authority and Circular Availability: The circular asserts its issuance under Section 11 of the Securities and Exchange Board of India Act, 1992, in conjunction with Regulation 101 of the LODR Regulations. It is accessible on the official SEBI website under the “Legal → Circulars” section.
Conclusion: In conclusion, SEBI’s decision to extend the timeline for the verification of market rumors demonstrates a pragmatic approach considering the dynamic nature of the financial industry. The revised deadlines afford listed entities the necessary time to adapt to impending changes, ensuring a smoother transition and effective compliance with the regulatory framework. Stakeholders are encouraged to refer to the circular for comprehensive insights into the amended timeline and its implications.
Note: The contact information provided is as per the given content and can be adjusted based on the actual details.
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Securities and Exchange Board of India
Circular No. SEBI/HO/CFD/CFD-PoD-2/P/CIR/2024/7 Dated: January 25, 2024
To,
All listed entities
All Recognized Stock Exchanges
Madam / Sir,
Sub: Extension of timeline for verification of market rumours by listed entities
1. The proviso to Regulation 30(11) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“LODR Regulations”) inter-alia requires top 100 listed entities by market capitalization and thereafter the top 250 listed entities by market capitalization to mandatorily verify and confirm, deny or clarify market rumours from the date as may be specified by SEBI. Further, SEBI vide Circular no. SEBI/HO/CFD/CFD- PoD-1/P/CIR/2023/162 dated September 30, 2023, has made the said provision applicable to top 100 listed entities by market capitalization from February 1, 2024 and to top 250 listed entities by market capitalization from August 1,
2. Considering the fact that the industry standards are under finalization and certain amendments to LODR Regulations are required for implementation of the aforesaid provision, it has been decided to extend the timeline for effective date of implementation of the proviso to regulation 30(11) of the LODR Regulations for top 100 listed entities by market capitalization, to June 1, 2024 and for top 250 listed entities by market capitalization, to December 1, 2024.
3. This Circular is issued in exercise of the powers conferred under Section 11 of the Securities and Exchange Board of India Act, 1992 read with Regulation 101 of the LODR Regulations.
4. This Circular is available at sebi.gov.in under the link “Legal →Circulars”.
Yours faithfully,
Vimal Bhatter
Deputy General Manager
Corporation Finance Department
Policy and Development-1
+91-22-26449386
vimalb@sebi.gov.in
