Home/ News / India/  Top 100 listed companies asked to confirm or deny rumours from October 1

In a bid to bring more transparency and ensure timely disclosure of “material events", the Securities and Exchange Board of India (Sebi) has asked the top 100 firms listed on the stock exchanges to confirm or deny market rumours that are likely to affect stock prices. The requirement will kick in from October 1, 2023 for top 100 companies by market capitalization. 

From April 1, 2024, this directive will be applicable for the top 250 companies as well, a press release from the regulator stated.

India's markets regulator said that it intends to put in place quantitative benchmarks to determine whether an event is material but did not immediately say what those metrics would be.

The SEBI also said that material events or disclosures emerging from a board of directors meeting must be disclosed to exchanges within 30 minutes.

Will not allow another Karvy type incident: Sebi chief

Sebi Chairperson Madhabi Puri Buch on Wednesday said the regulator will not allow another Karvy type incident to take place at any cost.

"There will not be another Karvy issue in our capital markets... If another Karvy like instance happens, it will be on our dead bodies...," Buch told reporters at the Sebi headquarters after a board meeting.

The Karvy scam came to light in 2019 when it was known that Hyderabad-based borekerage pledged securities worth 2,300 crore of almost 95,000 clients with three private banks and a large non-banking finance company as collateral to raise loans worth over 600 crore for itself.

Following a probe Sebi restricted Karvy Stock Broking from taking new clients. The Sebi order said the broking firm misused clients' power of attorney and transferred 1,096 crore to its group company Karvy Realty.



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Updated: 30 Mar 2023, 07:16 AM IST
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