Sebi directs top 100 listed firms to give clarification on market rumours from Oct 1
1 min read 29 Mar 2023, 09:24 PM ISTSebi's board approved a host of amendments in regard to the disclosure of material events or information by listed entities on Wednesday to bring more transparency.
PremiumMarket regulator SEBI in a board meeting on Wednesday asked the top 100 listed entities in terms of market capitalisation to clarify market rumours from October 1, 2023. This would increase to the top 250 listed companies from April 1, 2024. The move is done to bring more transparency in the timely disclosures of material events and information by listed firms on exchanges.
In a statement, the regulator said, "market rumours to be verified and confirmed, denied or clarified, as the case may be, by top 100 listed entities by market capitalization effective from October 1, 2023 and by top 250 listed entities with effect from April 1, 2024."
Sebi's board approved a host of amendments in regard to the disclosure of material events or information by listed entities on Wednesday to bring more transparency.
Also, Sebi directed to introduce of a quantitative threshold for determining the ‘materiality’ of events/information.
Further, the market watchdog asked for a stricter timeline for disclosure of material events/information for which decision has been taken in the meeting of the board of directors (within 30 minutes) and which are emanating from within the listed entity (within 12 hours).
Additionally, disclosure for certain types of agreements binding listed entities is also directed to be put in place.
On BSE, the top 100 listed companies in terms of market cap, is topped by Reliance Industries (RIL) with a valuation of over ₹15.12 lakh crore, followed by Tata Consultancy Services (TCS) and HDFC Bank with a market cap of over ₹11.48 lakh crore and ₹8.86 lakh crore respectively as of March 29, 2023. Other listed firms would be ICICI Bank, HUL, Infosys, HDFC, ITC, SBI, and Bharti Airtel in the top 10 list.
