To enable investors take informed investment decisions, SEBI has made it mandatory for listed entities to furnish details, such as the reasons for undertaking corporate decisions including mergers, stock splits, rating revision and capacity.

Stress on accuracy

Outlining the detailed list of decisions and actions taken by corporates, capital markets regulator SEBI in a circular on Wednesday said that timely, adequate and accurate disclosure of information on an ongoing basis is essential to make informed investment decisions.

The circular also seeks to bring in uniformity in disclosures made by listed entities and would be part of SEBI’s listing regulations.

If the listed entity does not disclose any such specified details, it has to state appropriate reasons for not doing so, as part of the disclosure, SEBI said.

For securities or derivatives listed outside India, parity in disclosures has to be followed — whatever is disclosed on overseas stock exchanges has to be simultaneously disclosed in India.

The new norms will come into effect within three months. SEBI’s listing regulations divide the events that need to be disclosed broadly into two categories.

Other disclosures include outcome of board meeting (to be disclosed within 30 minutes), debt restructuring and winding up under BIFR, among others.

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