SEBI floated a discussion paper to review clause 36 of the equity listing agreement
Picture used for representational purpose. (Photo: PTI/File)
Mumbai: The Securities and Exchange Board of India (Sebi) is set to review the norms governing the way listed firms make continuous disclosures regarding any material information having a bearing on a company’s performance. This is to help investors make informed investment decisions.
The capital market regulator on Tuesday floated a discussion paper to review clause 36 of the equity listing agreement, which mandates timely disclosures of relevant information by listed companies to investors.
Accordingly, the regulator said that all listed entities should inform the stock exchanges of all events and information, which are price sensitive and have a bearing on the company’s operation within a day of the occurrence of such events.
If there is any delay in the making such information available within one day, the listed entity along with such disclosure should provide a suitable explanation for delay in making such disclosures.
Sebi noted that an examination of disclosures made by listed entities under clause 36 and other related clauses over a period has brought out disparities in disclosures across listed entities and stock exchanges leading to unequal information being available with the investors.
The regulator also wants listed firms to make periodic disclosures on the associated material developments till such time as the event is resolved or closed.
( Source : dc correspondent )
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