Allow retail investors too on earnings calls, says biz council

The US India Business Council has called for more transparency in earnings calls from India Inc.

In a meeting with market regulator SEBI in Mumbai on Tuesday, the USIBC suggested that every investor irrespective of category should be allowed to dial in to earnings calls of companies.

It is still not a practice for Indian companies to allow retail investors on earnings calls.

The council also suggested that a transcript of the conference call be put up on the company website as soon as possible.

Currently, transcripts are uploaded on the websites anywhere between one and four days following the earnings call.

The council also wanted the regulator to up the investment limits for foreign portfolio investors in any scrip to at least 15 per cent from the existing 10 per cent.

The council also sought for better pricing information and quality of disclosures in the corporate bond market as the lack of it increased risk and without the information, calculation of risk also becomes difficult.

Also discussed were issues related to documentation regarding KYC norms as voluminous procedures increased compliance costs.

The council also sought lesser restrictions on investments in the bond markets, especially related to investment limits and minimum holding period.

A simplification of the rules of investing would attract more capital inflows, resulting in a reduction in interest rates and ultimately reduce the cost of capital for Indian companies, the council felt.

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