The Securities and Exchange Board of India (SEBI) has issued a significant circular, Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/162, dated September 30, 2023, addressing the timeline for the verification of market rumours by listed entities. This circular comes as an amendment to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations).
Background: Regulation 30(11) of LODR Regulations
Regulation 30(11) of the LODR Regulations contains provisions related to the verification and clarification of market rumours by listed entities. According to this regulation, the top 100 listed entities by market capitalization were initially required to mandatorily verify, confirm, deny, or clarify market rumours starting from October 1, 2023. Subsequently, the obligation was extended to the top 250 listed entities by market capitalization, with an effective date of April 1, 2024.
Extension of Timeline: SEBI’s Decision
SEBI has now decided to extend the implementation date of the proviso to Regulation 30(11) of the LODR Regulations. Specifically, the extension applies to the following categories:
- Top 100 Listed Entities: The deadline for top 100 listed entities by market capitalization to verify, confirm, deny, or clarify market rumours has been extended to February 1, 2024.
- Top 250 Listed Entities: For the top 250 listed entities by market capitalization, the extended deadline is August 1, 2024.
This decision provides additional time for these listed entities to prepare for and comply with the requirements outlined in Regulation 30(11).
Conclusion
SEBI’s decision to extend the timeline for the verification of market rumours by listed entities provides them with additional time to ensure compliance with Regulation 30(11) of the LODR Regulations. This extension allows these entities to make the necessary preparations and procedures to effectively address market rumours and maintain transparency in their operations. The regulatory body continues to actively monitor and adapt its regulations to promote the integrity and stability of India’s securities markets.
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Securities and Exchange Board of India
Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/162 Dated: September 30, 2023
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 with effect from October 1, 2023 and top 250 listed entities by market capitalization with effect from April 1, 2024 to mandatorily verify and confirm, deny or clarify market rumours.
2. It has been decided to extend the effective date of implementation of the proviso to regulation 30(11) of the LODR Regulations for top 100 listed entities by market capitalization, to February 1, 2024 and for top 250 listed entities by market capitalization, to August 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 atsebi.gov.in under the link “Legal→ Circulars”.
Yours faithfully,
Raj Kumar Das
Deputy General Manager
Corporation Finance Department
Policy and Development-2
+91-22-26449253
rajkd@sebi.gov.in
