Disclose company board decisions within 15 minutes: Sebi
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Mumbai: Market regulator Sebi has proposed that all listed companies should intimate within 15 minutes of closure of the board meetings about decisions on dividends, bonus, fund raising and buyback, among others.
The move is part of Sebi's effort to ensure 'timely and adequate' disclosures by listed companies.
In the discussion paper, the Securities and Exchange Board of India (Sebi) has suggested that all listed firms would have to intimate to the exchanges within 15 minutes of the closure of board of directors meeting about decisions on fund raising proposal, dividends, cash bonuses, buyback of securities.
Among others, listed entities also need to inform about decision on financial results, voluntary delisting, increase in capital by issue of bonus shares through capitalisation, including the date on which such shares would be credited, and re-issue of forfeited securities.
According to the 26-page discussion paper, these proposals have been prepared after reviewing practices in some of the international jurisdictions and after having discussions with various market participants, including bourses and industry representative.
The discussion paper is open for public comments till September 12.
"The quality of disclosures that are currently being made by the listed entities under the existing provisions, also points to the need for detailed rules governing continuous disclosures.
"Continuous, adequate, accurate and timely disclosure of information on an ongoing basis would achieve parity while enabling investors to make informed investment decisions," the discussion paper said.
