MUMBAI (Maharashtra) [India], Feb 21: The markets regulator Securities and Exchange Board of India (SEBI) has come out with a consultation paper on streamlining disclosure requirements by listed entities in order to strengthen compliance mechanisms.
The markets regulator has sought public comments on the proposals till March 6, 2023. In order to provide adequate time for newly-listed entities to disclose their first financial results post-exchange listing, the paper says it is desirable that at least 15 days time period from the date of listing may be provided.
“SEBI is in receipt of representations regarding challenges faced by the newly-listed entities immediately after their listing and about the gap in the current regulatory provisions for ensuring timely disclosure of the first financial results of such newly-listed entities,” the consultation paper said.
Explaining the need for the amendments, it said the timeline prescribed for submission of financial results may at times be difficult.
“Since the financial results are price sensitive information, such disclosures immediately post listing may have a large impact on the company’s share price even before the price of its scrip has stabilized post listing,” it said.
In its paper, the SEBI said it is also looking to address issues related to timelines to fill up vacancies of directors, Compliance Officers, Chief Executive Officers (CEO), and Chief Financial Officer (CFO) in listed entities.
The paper also seeks to freeze demat accounts of the Managing Director(s), Whole-time director(s) and CEO(s) of a listed entity for continuing non-compliance with the LODR (Listing Obligations and Disclosure Requirement) Regulations and or non-payment of fines by a listed entity.
A demat or dematerialization account helps investors hold shares and securities in an electronic format.
“This may result in timely compliance and / or payment of outstanding fines by listed entities and would ensure that MD, WTD, CEO are held accountable for non-compliance or non-payment of fines by listed entities. Further, this proposal would also be more relevant for professionally managed companies,” the paper said. (ANI)
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