Companies must disclose fund usage deviation: Watchdog

The Securities and Exchange Board of India Sebi today made it mandatory for all listed companies that raise more than Rs 500 crore through a public offer or a rights issue to make public the report of monitoring agencies set up to keep an eye on utilisation of funds.

The regulator said in a circular it has amended the equity listing agreement to bring more transparency in the governance of listed companies with regard to utilisation of issue proceeds and enhance accessibility to the disclosures by these firms. 8220;Every issuer company shall be required to inform material deviations in the utilisation of issue proceeds to the stock exchange,8221; Sebi said.

Besides, the companies would have to make the material deviations, adverse comments of the audit committee or the monitoring agency public through advertisement in newspapers.