Affluence Advisory
Quick Summary
Introduction to the Amendment Under the LODR amendment, listed entities are now required to establish a robust mechanism for rumours verification and timely dissemination of accurate information. It is essential to implement effective communication channels to promptly address rumours and counter
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FAQ :
Listed entities are now mandated to establish a mechanism to verify and promptly disseminate accurate information concerning market rumours reported in mainstream media.
The top 100 listed entities by market capitalisation are affected from October 1, 2023, and the top 250 listed entities are affected from April 1, 2024.
Listed entities must confirm, deny, or clarify any reported event or information that is not general in nature and suggests rumours of an impending specific material event, as soon as reasonably possible but no later than twenty hours from the reporting.
Mainstream media includes registered newspapers, news channels permitted by the Ministry of Information and Broadcasting, and content published by news and current affairs publishers, including similar entities outside India.
The amendment is expected to enhance transparency, protect investors by ensuring they have accurate information, and promote market stability by preventing undue speculation.
Listed entities should establish a rumour verification mechanism, ensure timely disclosure of verified information, maintain regular internal communication, and periodically evaluate their processes.
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