Disclosures

Committee headed by former RBI deputy governor will advice regulator on corporate governance, harmonisation of listing and post-listing obligations

The National Stock Exchange of India Limited (NSE) has issued a warning letter to Suzlon Energy Ltd for non-compliance with disclosure rules. In its letter to Suzlon, NSE observed that a disclosure of an analyst's call of the company held on November 6, 2023, was submitted to the exchange on the same day. The disclosure seems to be at shorter notice as required under the Sebi's LODR (listing obligations and disclosure requirements) rule, the letter dated July 29 said. The LODR rule requires a listed entity to inform the schedule of analysts or institutional investors to meet at least two working days in advance (excluding the date of intimation and date of meet). "The aforesaid non-compliance on your part is viewed seriously. You are, hereby, warned and advised to be careful in future, exercise due caution and initiate corrective steps to avoid the recurrence of such lapses so as to ensure due compliance with the applicable provisions of SEBI LODR," the NSE said. It further said t

Committee led by former whole-time member submits report on streamlining regulations

Capital markets regulator Sebi on Thursday sent demand notices to Dheeraj Wadhawan and Kapil Wadhawan, the former promoters of Dewan Housing Finance Corp Ltd (DHFL), asking them to pay Rs 10.6 lakh each in a case concerning flouting of disclosure norms. Also, the regulator has warned them of arrest and attachment of assets as well as bank accounts if they fail to make the payment within 15 days, according to two separate notices. The demand notices came after the Wadhawans failed to pay the fine imposed on them by the Securities and Exchange Board of India (Sebi) in July 2023. The regulator imposed a fine of Rs 10 lakh each on Wadhawans, who were promoters of DHFL (now known as Piramal Finance), for flouting disclosure norms. Kapil Wadhawan was the Chairman and MD of DHFL, while Dheeraj Wadhawan is the brother of Kapil and was a non-executive director in the company. Both of them were on the board of DHFL. The order came after Sebi conducted an investigation into the transfer of .

The ports-to-power conglomerate had denied wrongdoing in January

Another significant achievement is the adoption of information technology (IT) to improve various processes in the government and businesses

Capital markets regulator Sebi is looking to introduce disclosure requirements for unlisted companies, which are part of a business conglomerate. While listed entities are subject to comprehensive disclosure requirements, the same levels of disclosure requirements are not applicable for unlisted companies. "There is a need to identify, monitor and manage risks introduced into the securities market ecosystem by unlisted companies in a conglomerate with a complex set of listed and unlisted associates," Sebi said in its annual report for 2022-23. Also, the regulator plans to facilitate transparency around the conglomerate by enhancing the group-level reporting of transactions. "Disclosure of details of cross-holding and material financial transactions within the conglomerate are also some of the matters that Sebi would examine to be disclosed on an annual basis," the annual report noted. The country's top business conglomerates include Tata Group, Reliance Industries, Adani Group, Ad

Sebi's directive on family agreements will improve transparency

Authorities should, to the extent necessary, achieve regulatory outcomes comparable to those in traditional finance, the FSB said

The compliance burden on listed companies is set to increase from Saturday as capital markets regulator Sebi has put in place a stricter timeline for disclosure of material events or information by them. Under this, the Securities and Exchange Board of India (Sebi) has given 12 to 24 hours for disclosures. The regulator has asked companies to disclose agreements entered into by shareholders, promoters, related parties, directors, key managerial personnel, and employees of the listed entity or of its subsidiary, which can impact the management and control of such firms to stock exchanges. Such agreements need to be disclosed within 12 hours in case a listed entity is a party and within 24 hours where the listed entity is not a party. Disclosure of family settlement agreements was already required under the existing Para A of Schedule III under the LODR (Listing of Obligations and Disclosure Requirements) Regulations. Further, for material events or information that emanate from the

The National Commission considered that the law provided that jurisdiction could be based on the complainant's place of residence.

The total holdings of these 100 FPIs was Rs 1.2 trillion by at March 2023-end quarter; of these, 51 FPIs had all their investments in a single corporate group

Former US President Donald Trump did not disclose publicly he got a loan of $19.8 million from Daewoo, a company with ties to North Korea, which he should have reported in public financial disclosures

Disclosures around utilisation of issue proceeds not as exhaustive as IPOs: Rating agencies

Suggests halving disclosure timeline to 12 hours; proposes mandating top 250 listed firms to confirm/deny media reports

Industry players expect companies to advance their DRHP filings before new rules kick in

Leading stock exchanges BSE and NSE on Monday announced that they have taken measures for standardising the disclosures made by listed companies pertaining to the critical information for investors. Listed firms are required to submit periodical compliance filings to stock exchanges within the prescribed timelines. Under the measures, stock exchanges have implemented new XBRL-based compliance filing mechanism featuring identical and homogenous compliance data structures. The move will not only ease the compliance burden on listed entities but would also enable analytics on the data submitted by them, BSE and NSE said in a joint statement. XBRL-based filings for equity, debt, Real Estate Infrastructure Trust (REIT), Infrastructure Investment Trust (InvIT) have been released by both the exchanges to facilitate the input of the critical clauses of Sebi's LODR (Listing Obligations and Disclosure Requirements) Regulations. "We believe that these steps shall enhance the transparency an

Sebi said Reliance did not disclose the deal even after newspaper reports in March 2020 published price-sensitive details about the Facebook investment that led to a spike in RIL shares

The investors said Musk saved himself $156 million by failing to disclose that he had purchased more than 5% of Twitter by March 14

This is alignment with the tweaked FDI policy of 2020 under the approval route to curb hostile takeovers