Financial Markets Regulator Securities and Exchange Commission of India (Sebi) has issued a circular to extend the implementation period of the rule for large companies in terms of verification of market rumorsListed entities were divided into two broad categories: the top 100 and the top 250 by market capitalization.
The regulator ordered the top 100 listed entities by market capitalization, and then the top 250 listed entities, to verify and confirm, deny or clarify market rumors on a mandatory basis.
Previously, Sebi had ordered on The top 100 listed companies will have to implement the provision by February 1, 2024 and the top 250 entities by August 1, 2024. Now, the market regulator has extended the deadline for effective implementation to June 1, 2024 and December 1, 2024, respectively.
“Considering that industry standards are being finalized and certain amendments to the LODR Regulations are required for the implementation of the above-mentioned provision, it has been decided to extend the effective date of implementation of the provision of Regulation 30(11) of the LODR Regulations for the top 100 listed entities by market capitalization to June 1, 2024 and for the top 250 listed entities by market capitalization to December 1, 2024,” the circular reads.
The latest circular for extension of the deadline was published on January 25, 2024. It is available on the official Sebi portal under the legal link – circulars.
Offer for sale (OFS) of shares to employees
In another news, Sebi recently issued a framework for sale offer (OFS) of shares to employees through stock exchanges. Under this framework, promoters of eligible companies will be allowed to sell shares within two weeks of the transaction of offer for sale (OFS) to employees of these companies.
The circular also states that promoters are required to make necessary disclosures in the OFS notice to the stock exchange, including the number of shares offered to employees and the discount offered.