Sebi to soften stance on default disclosure requirement

Sebi is re-looking at some of the contentious issues in the proposed circular, which have been brought to its notice by market players

Easing the blow for corporate India, the Securities and Exchange Board of India (Sebi) is looking to re-issue a more relaxed loan default disclosure framework.

According to sources, the market regulator plans to give up to a month’s time to companies for disclosing loan defaults and also make provision to explain the nature of the default.

Under the previous proposal (according to a circular dated August 4) — the implementation of which has been deferred — Sebi had mandated companies to make public any loan defaults within 24 hours of missing the repayment obligation.

Sources said Sebi is re-looking at some