SEBI’s big decision regarding ranking of listing companies, know what changes are going to happen
SEBI has decided to change the method of ranking based on the market value of listed companies. Now the market price will be decided on the basis of average performance of the stock in one day or 6 months. According to the new method decided by SEBI, the average market value of 6 months of companies will be taken for ranking on the basis of valuation of companies in the market. First the market price of 31st March i.e. the last day of the financial year is taken.
SEBI has now instructed the stock exchanges to do the calculations on the last day of the calendar year and to decide the ranking, consider the average market cap between July 1 and December 31 as the basis. Ranking based on market value is very important to enforce the rules. Actually, many rules or deadlines of SEBI depend on the ranking decided according to the market price.
For example, in the case of the deadline for implementing the rule to curb rumours, the deadline for the top 100 companies based on market value is June 1 and for the top 250 is December 1. Along with this, ranking on the basis of market value is also important regarding the rules related to ESG and corporate governance and while implementing the rules, Top 100, Top 500, and Top 1000 have been kept in mind separately.
According to the rules, if there is a change in the ranking of a company on the basis of market value and it falls within the scope of a particular rule category, in such a situation this company will get 3 months time to fulfill these rules.
