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Extension in the timeline for verification of market rumors by listed entities
SEBI, vide circular dated January 25, 2024, provided an extension in timeline for verification of market rumours by listed entities. The SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("LODR Regulations") require top 100 (one hundred) listed entities by market capitalisation and thereafter the top 250 (two hundred and fifty) listed entities by market capitalisation to mandatorily verify and confirm, deny or clarify market rumours from the date as may be specified by SEBI. The timeline to confirm or deny the market rumours was extended to June 1, 2024, for top 100 (one hundred) listed entities by market capitalisation and, till December 1, 2024, for top 250 (two hundred and fifty) listed entities by market capitalisation.
Amendments to the LODR Regulations
SEBI, vide circular May 17, 2024, issued the SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2024. Some of the key amendments are as follows:
- every recognised stock exchange must, at the end of the calendar year i.e., December 31, prepare a list of entities that have listed their specified securities ranking such entities on the basis of their average market capitalisation from July 1 to December 31 of that calendar year;
- the meetings of the risk management committee must be conducted in such a manner that on a continuous basis not more than 210 (two hundred and ten) days (earlier this was 180 (one hundred and eighty) days) should elapse between any 2 (two) consecutive meetings;
- where the listed entity is required to obtain approval of regulatory, government or statutory authorities to fill up a vacancy of chief executive officer, managing director, whole time director or manager, then the vacancies must be filled up by the listed entity at the earliest and in any case not later than 6 (six) months from the date of vacancy;
- if a placement is done according to the provisions of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, no intimation regarding the determination of issue price in a qualified institutions placement is required; and
- the promoter, director, key managerial personnel or senior management of a listed entity are obligated to provide adequate, accurate and timely response to queries raised or explanation sought by the listed entity for complying with the disclosure of market rumours, including prompt intimations with the stock exchange.
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