Sebi changes rule for calculating market cap, six-month average to be used now
The regulator said instead of using the market capitalisation of a single day which is currently March 31, listed companies will now have to use the average market capitalisation for a six- month period.
Mumbai: The () has revised the method for calculating the of under the listing obligation and disclosure requirement (LODR) rules.The regulator said instead of using the market capitalisation of a single day which is currently March 31, listed companies will now have to use the for a six- month period.
The new rule would come into effect from ,2024.
It said the ranking of compliance would be based on average capitalisation from July 1 to December 31, with December 31 as the cut- off date.
"Every recognised stock exchange shall, at the end of the calendar year i.e., December 31, prepare a list of entities that have listed their specified securities ranking such entities on the basis of their average market capitalisation from 1st July to 31st December of that calendar year," Sebi said in a notification.
Source: Stocks-Markets-Economic Times
