The Securities and Exchange Board of India (Sebi), on Wednesday, asked the top 100 firms listed on the stock exchanges to confirm or deny market rumours that are likely to affect stock prices. The companies have been told to comply with the directive from October 1.
The move is aimed at ensuring transparency and on-time disclosure of "material events."
From April 1, 2024, this directive will be applicable for the top 250 companies as well, a press release from the regulator stated.
Sebi plans to come up with quantitative benchmarks to decide if an event is material.
Companies have been asked to disclose to exchanges material events or disclosers emerging from meeting of board of directors within 30 minutes.