The Securities and Exchange Board of India (SEBI) has told the top 100 listed companies by market capitalisation to confirm or deny market rumours with effect from October 1, 2023.

The market regulator has also asked top 250 listed firms by market capitalisation to clarify on market rumours with effect from April 1, 2024.

"Market rumours to be verified and confirmed, denied or clarified, as the case may be," SEBI said.

On disclosure of material events or information by listed entities, the market watchdog said its board has approved the introduction of a quantitative threshold for determining 'materiality' of events or information.

SEBI also said that material events or information for which decisions have been taken in the meeting of the board of directors must be disclosed to exchanges within 30 minutes.

"Stricter timeline for disclosure of material events / information for which decision has been taken in the meeting of the board of directors (within 30 minutes) and which are emanating from within the listed entity (within 12 hours)," the regulator said.

SEBI has also streamlined timeline for submission of first financial results by newly listed entities. "The timeline for submission of first financial results by newly-listed entities has been streamlined in order to overcome the challenges in immediate submission of financial results post listing and to ensure that there is no omission in submission of financial results," SEBI said.

The market regulator also issued directions on the timeline to fill up vacancies of directors and other officials of listed entities. "Listed entities shall be required to fill up the vacancy of Directors, Compliance Officer, Chief Executive Officer and Chief Financial Officer within a period of three months from the date of such vacancy, to ensure that such critical positions are not kept vacant," SEBI said.

In order to improve governance and transparency to investors with respect to transactions involving conflict of interest, the SEBI board has approved a proposal to mandate obtaining approval of 75% of investors by value, for buying or selling of investments potentially involving conflict of interest. The provision would cover transactions by an Alternative Investment Funds (AIF), from or to, associates of AIF, or schemes of AIFs managed or sponsored by the manager or sponsor or their associates, or an investor who has commitment to the extent of more than 50% of the corpus of the scheme of AIF, the market regulator said.

The SEBI board has also approved a framework to provide for an institutional mechanism for prevention and detection of fraud or market abuse by stock brokers.

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