To improve the quality of the information disclosed by corporates, the Securities and Exchange Board of India (SEBI) said it will roll out on Monday detailed guidelines on corporate disclosures.
The regulator was miffed at companies not disclosing their shareholding pattern (Clause 35 of the Listing Agreement) and not submitting their compliance report on corporate governance (Clause 49). SEBI wants strict compliance of the new guidelines. Speaking in Mumbai at the FICCI Capital Market Conference on Friday, SEBI Chairman U. K. Sinha said: “Today, there are 1,100 companies which are not compliant with the requirement of Clause 35 of the shareholding pattern, which means the direction with regard to the shareholding pattern has not been complied with.
“Also, there are 900 companies which are not compliant with the corporate governance norms as per Clause 49. You will accept that this can’t go on like this.” SEBI is also reviewing its guidelines on de-listing of companies besides those relating to preferential allotment of shares.
SEBI is also talking to its peer regulators in the US and the European Union to find a solution to the impact of overseas regulations such as the Foreign Account Tax Compliance Act or FATCA (which requires US nationals to pay taxes on money earned abroad and also requires foreign financial institutions to disclose account details of their US clients to the US tax authorities) on Indian companies.