New Ranking System

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.

Importance of 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.

ESG and Corporate Governance

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.

Transition Period

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.

3 Year Rule

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.

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