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Capital markets regulator Sebi has extended the deadline for implementation of rules related to mandatory confirmation or denial of market rumours by the top 100 listed companies.
The deadline has been extended for the top 100 listed companies by market capitalisation to June 1 from February 1 this year at present, according to a circular by the Securities and Exchange Board of India (Sebi).
For the top 250 listed entities, the rule will kick in on December 1, 2024, from the current requirement of August 1, 2024.
The regulators stated that the decision to extend the timeline for implementing LODR rules has been taken due to ongoing industry-standard finalisation and required amendments to market norms.
The rule is aimed at strengthening the corporate governance of listed entities.
"It has been decided to extend the timeline for effective date of implementation of...the LODR (Listing Obligations and Disclosure Requirements) regulations for top 100 listed entities by market capitalisation, to June 1, 2024 and for top 250 listed entities by market capitalisation, to December 1, 2024," Sebi said.
Last year in June, Sebi notified rules asking these listed companies by market capitalisation to confirm, deny, or clarify any market rumour reported in the mainstream media.
As per the disclosure requirements, these companies will have to "confirm, deny or clarify any reported event or information in the mainstream media, which is not general in nature and which indicates that rumours of an impending specific material event" are circulating amongst the investing public within 24 hours from the reporting of the information.