Under the DTR rules, what is a condition for delaying disclosure?

Under the DTR (Disclosure and Transparency Rules) guidelines, one of the conditions for delaying disclosure of inside information is that delaying it must not mislead the public. This means that if an issuer chooses to postpone the announcement of sensitive information, they need to ensure that the lack of disclosure does not create a false impression about the company's overall situation or misrepresent its financial standing.

This condition serves to maintain market integrity. For instance, if crucial information is withheld but later revealed, and it turns out that investors were led to believe everything was stable or normal, this could distort trading decisions and market perceptions. Therefore, the rule insists on a careful balance: while issuance of sensitive information may be delayed under certain conditions, transparency must be upheld to protect investors and ensure fair trading practices.

Other potential considerations, such as the significance of the information itself, the issuer providing a justification, or whether the information is already public, do not strictly meet the condition for delaying disclosure as effectively as ensuring that the public is not misled. Thus, the requirement that the public not be misled is critical to the integrity of the market and the trust investors place in the information provided by issuers.