Sebi Moots Stringent Norms For Timely, Adequate Disclosures

MUMBAI: To ensure "timely and adequate" disclosures, Sebi proposed a detailed set of norms for listed companies that require them to disclose price sensitive information within a day along with the reasons for such developments.

The companies will have to explain the delay if such disclosures are not made in a day, Sebi said while giving an exhaustive list of developments that can be price sensitive in nature.

Taking note of laxity in disclosures made by listed entities, the capital market watchdog has sought to define "material transactions" to make sure the price sensitive information are disseminated to stock exchanges on a timely basis.

In its discussion paper, Securities and Exchange Board of India (Sebi) has suggested that listed companies would have to inform stock exchanges about all events which are material in nature, price sensitive and have bearing on overall business performance.

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