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Wednesday, March 31, 2021

Welcome Moves for Better Reporting (The Economic Times)

Quick takes, analyses and macro-level views on all contemporary economic, financial and political events.


It is welcome that capital markets regulator Sebi has tightened disclosure and reporting norms for listed companies, to shore up transparency. It has now put in place new rules for sustainability reporting, streamlined the delisting process, and revamped the rules on calls to analysts to address information asymmetry for investors at large.


To proactively improve corporate governance, Sebi has announced a host of investor-centric changes in listing regulations. The top 1,000 listed entities by market capitalisation are now required to formulate a dividend distribution policy. Also, the rule for setting up Risk Management Committees has been extended to the top 1,000 corporates by market cap, up from the top 500 now. The Business Responsibility and Sustainability Report (BRSR) will replace the extant Business Responsibility Report, and the top 1,000 companies need to mandatorily file it from next fiscal. Companies listed in India do need to benchmark with global best practices when it comes to environmental, social and governance (ESG) standards.


Further, Sebi has mandated listed entities to disclose recordings of meetings with analysts on their websites before the next trading day or 24 hours, whichever is earlier. There are also strict timelines for disclosure of financial results. We do need to stipulate stricter insider trading standards. Sebi has also rationalised reclassification of promoters, for instance, those with less than 1% shareholding. Promoters are now required to disclose their intention for delisting in an initial public announcement, and a committee of independent directors must okay the move. The revamped disclosure requirements should boost corporate governance standards in India Inc.

Courtesy - The Economic Times.

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Help Sampadkiya Team in maintaining this website

इस वेबसाइट को जारी रखने में यथायोग्य मदद करें -

-Rajeev Kumar (Editor-in-chief, Sampadkiya.com)

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