SEBI Pushes Deadline For Comments On Litigation Disclosure Proposal To July 29

Market regulator SEBI on Monday has extended the deadline for public comments regarding the proposal to provide additional time for the disclosure of litigations or disputes involving claims against listed firms to July 29.

Initially, the Securities and Exchange Board of India issued a consultation paper on June 26 seeking public feedback by July 17. This was based on recommendations from an expert committee aimed at enhancing ease of doing business and harmonising provisions of the Issue of Capital and Disclosure Requirement and Listing Obligations and Disclosure Requirements Regulations.

Now, the regulator has decided to extend the comment period according to a statement by SEBI.

In its consultation paper, SEBI also suggested permitting companies to conduct virtual or hybrid shareholder meetings on a permanent basis.

The markets watchdog has also suggested additional time for disclosure of the outcome of the board meeting that concludes after trading hours.

Additionally, SEBI recommended combining pre-issue advertisement and price band advertisement as a single advertisement, proposed disclosing certain information with a quick response code link and proposed disclosure of pre-issue shareholding and post-issue shareholding for promoter, promoter group and additional top 10 shareholders.

Further, SEBI proposed system-driven disclosure of certain filings like shareholding patterns, revision in credit ratings and suggested that the requirement of publishing detailed advertisements in newspapers for financial results should be made optional for listed entities.

The proposals, based on the recommendations of an expert committee chaired by SK Mohanty, a former whole-time member of SEBI, aimed at facilitating ease of doing business, bringing in clarity and reducing the overall compliance burden, including the cost of compliance while effectively balancing investor protection.

(With Inputs From PTI)