The top 100 listed companies by market capitalization were asked by the market regulator SEBI to explain market rumors starting on October 1, 2023, during a board meeting on Wednesday. From April 1, 2024, this would rise to the top 250 listed businesses. The action is taken to increase openness in the prompt disclosure of important information and events by listed companies on exchanges.
In a statement, the regulator said, “market rumours to be verified and confirmed, denied or clarified, as the case may be, by top 100 listed entities by market capitalization effective from October 1, 2023 and by top 250 listed entities with effect from April 1, 2024.”
On Wednesday, the Sebi board approved a number of reforms aimed at increasing openness in the disclosure of significant events or information by listed entities.
Also, Sebi directed to introduce of a quantitative threshold for determining the ‘materiality’ of events/information.
Further, the market watchdog asked for a 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).
Additionally, disclosure for certain types of agreements binding listed entities is also directed to be put in place.
On BSE, the top 100 listed companies in terms of market cap, is topped by Reliance Industries (RIL) with a valuation of over ₹15.12 lakh crore, followed by Tata Consultancy Services (TCS) and HDFC Bank with a market cap of over ₹11.48 lakh crore and ₹8.86 lakh crore respectively as of March 29, 2023. Other listed firms would be ICICI Bank, HUL, Infosys, HDFC, ITC, SBI, and Bharti Airtel in the top 10 list.