SEBI introduces a new approach to rank listed companies based on the average market cap. The regulator has shifted from a daily market cap to a six-month average for rankings.
SEBI’s aim is to provide accurate market value by considering overall fluctuations rather than relying solely on a single-day calculation, for comprehensive market insight.
SEBI has established a glide for the top 100, 500, and 1,000 companies for compliance with ESG and corporate governance norms based on their market cap rankings.
To facilitate a smooth transition, Sebi has granted a three-month window for companies that become subject to any new mandate for the first time under the revised rankings.
If a listed entity remains below the threshold for three consecutive years, the provisions that apply based on market cap criteria will cease to apply at the end of the fiscal year.