The Securities and Exchange Board of India (SEBI) has tightened the norms for listed companies on disclosure of loan defaults. Now in case of default in repayment of principle or interest on loans beyond 30 days, listed companies will have to disclose the fact of such a default within 24 hours. The board has decided that in case of any default in repayment of principle and interest on loans from banks or financial institutions which continues beyond 30 days from the pre-agreed payment date, listed entities shall promptly, but not later than 24 hours from the 30th day, disclose the fact of such default, SEBI noted in a statement. The new norm will be applicable to listed firms from January 1, 2020.
The SEBI also granted extension of Business responsibility reporting to top one thousand listed entities by market capitalization. The SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations) require that the top five hundred listed entities based on Market capitalization, as on March 31 of every financial year shall include Business Responsibility Reporting (BRR) as part of their annual reports. The Board upon deliberations approved a proposal to extend the applicability of Business Responsibility Reporting (BRR) to top one thousand listed entities.
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