 "Sebi, Securities and Exchange Board of India")
The Securities and Exchange Board of India (Sebi) has extended the timeline for complying with rumour verification norms to June 1. The earlier deadline was February 1.
The extension comes on the back of fresh feedback sought by the market regulator on submissions made by the Industry Standards Forum (ISF) and other proposals around it.
The top 100 listed companies will now have to confirm, deny, or verify reports in the media from June 1, while the timeline for the top 250 listed companies has been moved to December, according to a circular from Sebi on Thursday.
This is the second extension granted to companies. The earlier timeline was to be effective in October 2023.
To address the implementation challenges raised by corporates, the market watchdog constituted the ISF, whose recommendations have been included in the consultation paper floated in December 2023.
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The regulator will be reviewing the suggestions at the next board meeting scheduled for late February, according to sources.
Depending on the board’s decision, the appropriate changes may be included in the regulation, they added.
In the consultation paper, Sebi has proposed verification only on material impact on stock prices while also factoring in the movement in the benchmark indices National Stock Exchange Nifty and S&P BSE Sensex.
The material price movement will be determined based on the price range of securities. For shares falling under the high price range, a lower percentage move would be considered material, while for those in the lower price range, a higher variation would be considered material.
Furthermore, Sebi has proposed confirmation or denial by a listed company within 24 hours after the price impact, instead of 24 hours after reporting in mainstream media.
The regulator has also proposed obligating promoters, directors, and key executives to provide accurate and timely responses in case the rumour pertains to them and not the listed firm.
