Inform investors together in India, abroad: Sebi to companies

To ensure timely disclosure by listed companies about material developments, Sebi today asked them to simultaneously inform investors in India and abroad as it issued detailed guidelines about the information they need to disclose mandatorily.
The companies would also need to disclose the details about any pact, treaty or contract signed with media firms, as also the frauds or defaults by promoters or top executives as part of the new regulations notified by Sebi.
The detailed circular follows Sebi notifying the new Listing Regulations last week, which have replaced the Listing Agreement that the companies earlier required to sign with stock exchanges.

After becoming regulations, these requirements would have greater enforceability, and any violation would attract stricter penal action.
"In order to enable investors to make well-informed investment decisions, timely, adequate and accurate disclosure of information on an ongoing basis is essential. Also, there is a need of uniformity in disclosures made by listed entities to ensure compliance in letter and spirit," Sebi said.
The events that would need to be disclosed by the listed companies include details of merger, acquisitions and restructuring schemes, sale of business units, securities transactions such as issuance, forfeiture and buyback, rating revisions, outcome of board meetings and shareholder meets, joint ventures and family settlements.

Other details about which the disclosures would need to be made include changes in directors or other key positions, debt restructuring and settlements with banks, winding up petitions, analyst or institutional investor meetings or presentations made to them, launch of new business and closure of existing operations, litigations and regulatory actions.