SEBI proposes new listing & disclosure requirement norms

SEBI proposes new listing & disclosure requirement norms

TO ENHANCE enforceability of various regulator)' provisions by listed firms. SEBI on Monday proposed a new set of rules that would require greater disclosures by (he companies and give more powers to stock exchange to check any non-compliance. The proposed norms, to be called SEB1 Listing Obligations and Disclosure Requirements
Regulations. 2014. would need to be followed by all listed companies. as also for listing of debentures, bonds and mutual funds on stock exchanges.
The final norms, which would he framed alter taking into public comments, would replace the existing provisions for Listing Agreement that currently act as a contract between a stock exchange and the entity seeking to list on its platform.

The SEBI has sought public comments on the proposed norms by May 30. Detailing the proposed norms in a 74-page document today, SEBI has brought in provisions related to powers of bourses in case of non-compliance by listed entities, empowering bourses impose penal lies on entities for violations, listing and disclosure requirements for mutual funds, among others.

"The slock exchange shall, incase Of non-compliance with provisions of these regulations, initiate appropriate action against the listed entity including levying of Tines, suspension, freezing of promoter shareholding etc a> specified by the Board through circulars or guidelines issued in this regard from time to time." the draft norms said.

"The slock exchange shall revoke suspension, unfreeze promoter shareholding, eic of the listed entity in the manner as directed bv the Board from time to time." it added.

The new rules would also include provisions related to the revised corporate governance framework such as requirement by companies to get shareholders' approval for related party transactions, setting upa wins tie blower mechanism, elaborate discto sures on pay packages and requirement of at least one woman director on company boards.

The draft norms are also likely to include rules that would require entities 10 give prior intimidation about their fund-raising events such as preferential issue and debt issue as well as file an annual information memorandum.

Posted in: News 2014