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SEBI approves stricter disclosure norms for companies defaulting on loans

SEBI also extended the requirement for Business Responsibility Report (BRR) to top 1,000 companies, up from 500 companies presently.

By: Express Web Desk | New Delhi |
Updated: November 20, 2019 5:46:18 pm
In another decision taken at the meeting, Sebi would revise the norms for issuance of shares on right basis to existing shareholders. The timeline would be reduced from 55 days currently to 31 days.

The Securities and Exchange Board of India (SEBI) has approved stricter disclosure norms for the listed companies that are defaulting on loans.

The market regulator has also revised its regulations for the portfolio managers as well as for the rights issue of shares. Apart from these steps, it also extended the requirement for Business Responsibility Report (BRR) to top 1,000 companies, up from 500 companies presently.

Companies that fail to repay the principle amount or interest on loans beyond a period of 30 days will be required to disclose “fact of such a default” within a period of 24 hours, SEBI announced following its board meeting in Mumbai.

In a separate decision taken in its meeting, SEBI would be revising the norms for the issuance of shares on the basis of rights to the existing shareholders. the time taken for the process will be reduced to 31 days from the existing 55 days.

That apart, the market regulator will also amend its norms for the portfolio managers, where the requirement for the net worth and minimum investment would get raised for such portfolio managers.

SEBI Chairman Ajay Tyagi has said that the regulator’s objective is to “get more openness to help investors.”

(with PTI inputs)

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