'Confirm' or 'deny' media reports in 24 hrs from Oct 1: SEBI to top 100 listed cos

Capital markets regulator Securities and Exchange Board of India (SEBI) has asked the top 100 listed companies to confirm, deny or clarify any reported events or information in the mainstream media within 24 hours from October 1. For the top 250 listed entities, the guidelines are applicable from April 1, 2024.

In a circular dated June 13, the capital markets regulator issued a slew of guidelines to strengthen corporate governance.

"Provided that the top 100 listed entities (with effect from October 1, 2023) and thereafter the top 250 listed entities (with effect from April 1, 2024) shall 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 or information in terms of the provisions of this regulation are circulating amongst the investing public, as soon as reasonably possible and not later than twenty-four hours from the reporting of the event or information," SEBI said.

The capital markets regulator said if the listed entities confirm the reported event or information, "they shall also provide the current stage of such event or information."

Meanwhile, the capital markets regulator has also issued a framework for certain shareholders to enjoy special rights. SEBI said that "any special right granted to the shareholders of a listed entity shall be subject to the approval by the shareholders in a general meeting by way of a special resolution once in every five years starting from the date of grant of such special right."

"Provided that the special rights available to the shareholders of a listed entity as on the date of coming into force of the regulation shall be subject to the approval by shareholders by way of a special resolution within a period of five years from the date of coming into force of this regulation," the circular said.

Meanwhile, in case of the resignation of key managerial personnel, the listed entities need to inform the stock exchanges within seven days from the date of resignation, according to the circular. "In case of resignation of key managerial personnel, senior management, Compliance Officer or director other than an independent director; the letter of resignation along with detailed reasons for the resignation as given by the key managerial personnel, senior management, compliance officer or director shall be disclosed to the stock exchanges by the listed entities within seven days from the date that such resignation comes into effect," SEBI said.

"In case the Managing Director or Chief Executive Officer of the listed entity was indisposed or unavailable to fulfil the requirements of the role in a regular manner for more than forty-five days in any rolling period of ninety days, the same along with the reasons for such indisposition or unavailability shall be disclosed to the stock exchange(s)," it added.