SEBI has directed India's top 100 companies to confirm or deny market rumors that affect share prices, as it aims to prevent misinformation from spreading.
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Top 100 and top 250
The top 100 and 250 listed firms must respond to rumors and media reports from October 2023 and April 2024, respectively.
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Market swings
Rumors can impact marketbehavior by creating uncertainty and speculation, leading to swingsin stock prices and harming investor interest.
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Investor confidence
SEBI's directive to companies to confirm or deny market rumors is expected to boost investors' confidence and curb market manipulation.
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Timely disclosureof events
SEBI approved undisclosed metrics to determine the 'materiality' of an event. Material events from board meetings must be disclosed in 30 minutes.