BUSINESS

SEBI asks companies to clarify rumors

By Athik Saleh

1

Clarify rumors

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.

2

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.

3

Market swings

Rumors can impact market behavior by creating uncertainty and speculation, leading to swings in stock prices and harming investor interest.

4

Investor confidence

SEBI's directive to companies to confirm or deny market rumors is expected to boost investors' confidence and curb market manipulation.

5

Timely disclosure of events

SEBI approved undisclosed metrics to determine the 'materiality' of an event. Material events from board meetings must be disclosed in 30 minutes.

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