In a significant move to bolster market transparency and streamline business operations, regulator Securities and Exchange Board of India (SEBI) has introduced new industry standards for the verification of market rumours. 

These measures are particularly aimed at the top 100 listed companies, who will need to adhere to these standards starting June 1, 2024. Exposure to some of these companies has direct implications for portfolios of PMS and AIF approaches. 

The scope will expand to include the next 150 top listed entities by December 1, 2024, as detailed in SEBI's earlier circular from January 25, 2024.

This initiative is spearheaded by the Industry Standards Forum (ISF), which includes representatives from ASSOCHAM, CII, and FICCI, working under the aegis of the Stock Exchanges.

The ISF, in close collaboration with SEBI, has crafted these standards to ensure compliance with Regulation 30(11) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The newly established guidelines are set to be published on the websites of the involved industry associations and stock exchanges, making them readily accessible to all stakeholders.

Stock exchanges have been tasked with ensuring that all listed entities are made aware of these new requirements and comply accordingly. This directive is issued under the authority granted by Sections 11(1) and 11A of the Securities and Exchange Board of India Act, 1992, alongside Regulation 101 of the LODR Regulations.

For those seeking further information, the complete circular is available on the SEBI website. Click to read here.