SEBI vide notification dated 25th January, 2024 extended timeline for verification of market rumours by listed entities.How does this notification apply to listed entities? What is SEBI's control on market rumours?

SEBI has a framework through surveillance mechanism to verify market rumours or event reported in the mainstream media on the performance of listed entities. This requires the listed company to confirm, deny or clarify, upon the material price movement as may be specified by the stock exchanges, any reported event or information in the mainstream media which is not general in nature and which indicates that rumour of an impending specific event or information is circulating amongst the investing public, as soon as reasonably possible but in any case not later than twenty four hours from the trigger of material price movement. The purpose of this rule is to prevent investors from making decisions based on rumours. The proviso to Regulation 30 (11) of the SEBI (LODR) Regulations 2015, inter alia, requires top 100 listed entities by market capitalisation and thereafter the top 250 listed entities by market capitalisation to mandatorily verify and confirm, deny or clarify market rumours from the date as may be specified by SEBI. SEBI vide its circular dated September 30,2023 has made the said provision applicable to top 100 listed entities by market capitalisation from February 1, 2024 and to top 250 listed entities by market capitalisation from August 1, 2024. SEBI has extended this timeline for effective date of implementation of the proviso to regulation 30 (11) of the SEBI (LODR) Regulations for top 100 listed entities by market capitalisation, to June 1, 2024 and for top 250 listed entities by market capitalisation, to December 1, 2024.