SEBI LODR AMENDMENTS

Amendments effective from May 18, 2024

Rumour verification Reg. 30(11): Rumour verification by listed companies is now linked to material price movement. Material price movement would be specified by stock exchanges. Exchange circular in this regard is now awaited to understand as to what would be considered as material price movement. SEBI also mandates exclusion of period of material price movement and confirmation while determining price of securities for certain corporate actions if listed entity confirms event or information leading to material price movement.

SEBI had extended timeline for rumour verification by top 100 listed companies and top 250 listed companies as per March 31, 2024, market capitalisation with effect from June 1, 2024, and December 1, 2024, respectively vide its circular dt: January 25, 2024.

Obligations on Promoter, Director, key managerial personnel, and senior management: SEBI mandates promoter, director, key managerial personnel, or senior management to provide adequate, accurate and timely responses to queries raised or explanations sought by listed entity to comply with rumour verification framework. SEBI also mandates listed entity to disseminate the response received from such individual(s) promptly to stock exchange.

Filling up vacancies [Reg. 26A]: SEBI now permits filing up the vacancies in the office of Chief Executive Officer, Managing Director or Manager, Whole Time Director, Chief Financial Officer within six months (as against three months prior to amendment) from date of vacancy where approval of regulatory, statutory or government authority is required.

Prior intimation to stock exchanges [Reg. 29]: Uniform time period of two working days is now prescribed for prior intimation for all events prescribed under as reg. 29. Further SEBI has exempted prior intimation to stock exchanges regarding determination of issue price in case of qualified institutional placement if issue is made as applicable SEBI regulations. Listed companies who are yet to announce financial results can now intimate board meeting for considering annual financial results along with corporate action, if any two working days prior. SEBI has further clarified that fund raising through any money market instrument would also now require prior intimation viz. fund raising by way of issue of commercial paper etc. Prior intimation being given to stock exchange under Reg. 29 will no