SEBI considers easing disclosure rules for listed companies

Tanushree Jaiswal

Last Updated: 27th June 2024 - 12:41 pm

India's markets regulator is contemplating easing certain disclosure norms for listed companies. These changes would address areas such as related party transactions and disclosures related to large shareholders.

The Securities and Exchange Board of India (SEBI) is also considering allowing listed companies more time to publicly disclose litigations or disputes they are involved in, according to a consultation paper published on Wednesday.

Over the past year, SEBI has issued multiple consultation papers, typically regarded as an initial step towards policy changes, as the regulator aims to streamline norms for listed companies in India's equity capital markets.

Among other recommendations, the regulator proposed that once companies are listed, they should seek shareholder approval for compensation or profit-sharing agreements that were established when they were privately held.

For related party transactions, SEBI has proposed that public companies be exempted from seeking audit committee approvals for directors' and executives' remuneration, as well as from the requirement to disclose their compensation on a half-yearly basis.

SEBI also suggested that listed companies disclose information such as their memorandum of association and articles of association on their websites.

The regulator has invited comments from market participants on these proposals by July 17.

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