Cos need to explain delay in disclosure beyond 24hrs: Sebi

Tightening the disclosure norms, markets regulator Sebi has warned listed firms that any delay in filing 'material information' beyond the 24-hour timeframe will have to be explained.

The move is aimed at bringing more transparency in the business affairs of the company.

Under the norms, the listed entity will have to inform to the stock exchange of all events which are material, all information which is price sensitive and/or have bearing on performance/operation of the listed firm within 24 hours.

"Any delay in filing disclosures beyond the timeframe of 24 hours shall be accompanied by an explanation for delay," the Securities and Exchange Board of India (Sebi) said.

However, decisions related to board meeting will have to be disclosed within 30 minutes.

Sebi said that every listed company is required to update material developments on a regular basis pertaining to the disclosures made till the event is resolved/closed. Besides, the firm will have to host these events along with all updated information on its website at least for a period of five years.

Post five years, the requirement of disclosure of such events is as per the archival policy of the listed company.

The listed entities will have to authorise one or more 'Key Managerial Personnel' for the purpose of determining materiality of an event or information and making disclosures to the stock exchange.

The details of authorised key managerial personnel need to be disclosed to the stock exchange as well as on the company's website.