By CNBC-TV18 Nov 21, 2019 7:42:34 AM IST (Updated)
Markets regulator Sebi on Wednesday approved stricter disclosure norms for listed companies on loan defaults and revised its regulations for portfolio managers as well as for rights issue of shares.
Markets regulator Sebi on Wednesday approved stricter disclosure norms for listed companies on loan defaults and revised its regulations for portfolio managers as well as for rights issue of shares.
In case of default in repayment of principal or interest on loans beyond 30 days, listed companies will have to disclose "fact of such a default" within 24 hours, the regulator said after its board meeting here.
It is noteworthy that in October 2018, Sebi wanted even a one-day default to be reported but this was shot down by the board at that time.
Sebi also extended the Business Responsibility Report (BRR) requirement to the top 1,000 companies, from 500 currently.
In another decision taken at the meeting, Sebi has revised the norms for issuance of shares on the right basis to existing shareholders. The timeline will be reduced from 55 days currently to 31 days.
Besides, the watchdog will amend the norms for portfolio managers wherein net worth and minimum investment requirements will be raised for such entities.
About the new disclosure requirements on loan defaults, Sebi Chairman Ajay Tyagi said the objective is to "get more openness to help investors".
(With PTI inputs)