Sebi gives 100 most valuable firms until February 1 to comply with rule making verification of rumours mandatory

Market regulator Sebi on Saturday gave the top 100 listed companies in the country until February 1 to comply with new rules demanding verification of market rumours. The development means an extension to an earlier deadline of October 1, announced in March this year, applicable to rules making the verification and the subsequent confirmation, denial or clarification of market rumours mandatory. 

Sebi also pushed forward a similar deadline of April 1, 2024 for the top 250 listed companies to August 1, 2024, according to a circular dated September 30. 

The norms are aimed at enhancing transparency in timely disclosures of material events and price-sensitive information in the listed space.

Why did the top 100 companies get more time to comply with the new norms?

Zee Business learned from sources that companies and industry chambers want Sebi to simplify the definition of rumour. Clarity on aspects such as the size of a media outlet, platform or social media that requires the verification is also sought, according to the sources. 

"For instance, more clarity is awaited on whether the verification of details such as capacity and investment in case of expansion, or cost, the parties involved and the status of talks in case of mergers are required to be verified," the sources added. 

(This story will be updated shortly)