India’s Capital markets regulator, SEBI, will soon put in place a system-driven disclosure regime for listed companies, according to sources.
The move is expected to strengthen real-monitoring of insider-trading cases and detect other corporate governance-related lapses.
A working group formed by SEBI is now finalising the report, on the basis of a feasibility study done by SEBI’s International Advisory Board on the proposed regime, wherein the onus of disclosures will shift from the individuals or firms to the systems in place.
SEBI has also set up a committee to review the disclosures and application forms in public issues with an objective to revisit the adequacy and quality of disclosures made along with the application form (including prospectus and abridged prospectus).
The proposed norms will also help reduce the compliance burden on individuals and the companies, as disclosures made under different norms would be integrated so as to reduce the number of times the same disclosure is required to be made.
“To begin with, disclosures made under different regulations may be integrated to the extent possible so as to reduce the number of times the same disclosure is required to be made by an individual,” the International Advisory Board said in its recommendations.
Besides strengthening the monitoring of listed companies including implementation of SEBI norms for Corporate Governance, SEBI is also undertaking steps to create awareness among listed companies for ensuring better compliance culture.
SEBI is also reviewing the structure, design, format, contents and order of information from the point of ensuring that the materially important information is provided in a structured and user-friendly manner besides revising the provisions for continuous disclosure requirements under listing agreement.