Sebi likely to relax new disclosure norms around rumour verification

Legal experts said that as such disclosures will have a bearing on stock prices there is a need for tweaks in regulations addressing fraudulent trade practices

The Securities and Exchange Board of India (Sebi) might relax the disclosure norms around rumour verification to help smooth implementation and ease compliance amid pushback from India Inc, said people in the know.
 

The rule has been notified following amendments to the Listing Obligations and Disclosure Requirements (LODR) by Sebi. However, its implementation has been deferred until February. In the meantime, a forum comprising industry bodies, exchanges, legal experts, and regulatory officials is in a huddle to understand the challenges around it and formulate a process for its easier implementation.
 

“The feedback Sebi has got is that there could be