Sebi to clamp down on large-scale disclosure norm violations
18 Nov 2013 11:46 PM GMT
As Sebi gears up to crack whip on corporates for non-compliance with disclosure norms, hundreds of listed companies have been found to be violating model regulations for disclosing key details such as financial results and shareholding data.
Non-compliance with regulations requiring timely disclosure of corporate governance reports and reconciliation of shares capital have also come to the fore in large numbers.
The capital markets regulator is likely to issue on Monday detailed guidelines on corporate disclosure requirements in a move to improve the quality of information that needs to be disclosed by the companies to shareholders.
The proposed action follows large-scale discrepancies found in the mandatory financial and other corporate disclosures made by listed companies to the stock exchanges, a senior official said, adding that Sebi is taking the issue seriously.
While trading has been previously suspended in shares of a majority of non-compliant companies, further penal actions can be initiated against them, he added.
As per the latest data compiled from disclosures made to the stock exchanges, nearly 1,150 companies failed to comply with the disclosure norms for quarterly and annual financial results, while over 1,000 companies failed to comply with disclosure rules related to shareholding pattern.
These companies either failed to disclose the data in a timely manner, or the information shared had
discrepancies.
Non-compliance with regulations requiring timely disclosure of corporate governance reports and reconciliation of shares capital have also come to the fore in large numbers.
The capital markets regulator is likely to issue on Monday detailed guidelines on corporate disclosure requirements in a move to improve the quality of information that needs to be disclosed by the companies to shareholders.
The proposed action follows large-scale discrepancies found in the mandatory financial and other corporate disclosures made by listed companies to the stock exchanges, a senior official said, adding that Sebi is taking the issue seriously.
While trading has been previously suspended in shares of a majority of non-compliant companies, further penal actions can be initiated against them, he added.
As per the latest data compiled from disclosures made to the stock exchanges, nearly 1,150 companies failed to comply with the disclosure norms for quarterly and annual financial results, while over 1,000 companies failed to comply with disclosure rules related to shareholding pattern.
These companies either failed to disclose the data in a timely manner, or the information shared had
discrepancies.
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