The Hindu Business Line : ANMI calls for more disclosure of shareholding details

The Association of NSE Members of India (ANMI) has sought greater and more up-to-date disclosure of shareholding patterns in listed companies, an issue it thinks needs immediate attention of the regulator.

Shareholding patterns constitute price-sensitive information downloaded every week by the depositories to registrars and share transfer agents.

The companies concerned, however, upload this at the end of the quarter. Such quarterly updates are not entirely helpful in many cases, said Mr Vijay Singhania, President of ANMI.

"This becomes out-of-date by the time it enters the public domain. If the latest position is available with registrars and the companies, general investors too should be able to access it," he told newspersons.

Focus open positions

Disclosure of open positions of promoters and directors is also a matter for the market watchdog to focus on, the association said.

Ordinary investors should have access to information on promoters' positions in the derivatives segment.

Stock exchanges currently provide information on open positions in derivatives, but the concentration of buyers and sellers is not commonly known. This situation needs to be corrected.

The organisation, which has also closely looked at transactions conducted by FIIs and other investors, has urged the Government to ensure more transparency in this regard.

It has urged policymakers to ask for higher forms of disclosure with respect to the number of parties transacting in stocks, especially in terms of information that can be provided on a daily basis.

ANMI's observations, said Mr Singhania, come partly in the wake of recent developments in the Indian market, particularly the decline in the index levels seen in mid-May.

Its assessment of the situation has led to suggestions regarding a number of critical aspects - timing of pay-in and payout, square-up terminals at members' end and the like.

On another front, ANMI is trying to encourage certain global best practices that can be introduced in India.

It has made a few suggestions to the NSE in this regard. It recently became a member of Asian Securities Forum (the 13th organisation to do so) and will participate in the forum's next annual general meeting.

BSE members keen

Meanwhile, ANMI has proposed to admit all members of the BSE to create what is likely to become the country's first self-regulatory organisation (SRO) of brokers.

The scope of the association, Mr Singhania said, will be expanded; it will also be renamed Association of Members of National Exchanges of India.

An application has been sent to the RoC to bring about the necessary changes.

"Our membership base will increase from about 700 to well over a thousand. This will help us create a united front, the first step towards the formation of an SRO. A number of such SROs are active in other countries."