Cos to host 'material' details on websites for 5 yrs: Sebi

As Sebi tightens noose on selective leak of market-sensitive information by listed firms, they will have to host all 'material' details about their business on their respective websites for at least five years.
This would be in addition to such details being disclosed by listed companies through the stock exchange platforms for the benefit of investors.
Sebi has decided to tighten its corporate disclosure norms for listed companies, including by asking them to disclose board decisions within 30 minutes and details of other 'material' developments within 24 hours.
"The listed entity shall disclose on its website all events/information which is material and such information shall be hosted for a minimum period of 5 years and thereafter as per the archival policy of the listed entity, as disclosed on its website," Sebi said.

Under the new norms, the listed entities will also be required to regularly update information with respect to 'material' events. This would be in addition to the current requirement of making disclosures at the time of occurrence and after the cessation of the event.
"In addition to current requirement of making disclosure at the time of occurrence and after the cessation of the event, updation of disclosure on material developments shall also be made on a regular basis till such time the event/ information is resolved/closed with explanations wherever necessary," Sebi said.

The new disclosure requirements are aimed at checking a widespread practice among the Indian companies of selectively leaking the information, including through media and without informing the investors first, for personal gains by promoters and management by way of inflating the valuations in the stock market and before merger and acquisition deals.

To bring in these changes, which puts the disclosure requirements in India at par with many developed markets, Sebi's board had approved the norms in its meeting yesterday.
Last year in a discussion paper, Sebi had proposed periodic disclosures on the associated material developments till such time the event is closed.
Among others, Sebi board also approved amendments wherein companies would have "to disclose all events or information with respect to subsidiaries which are material for the listed entity".
Under the new disclosure guidelines, the listed entity will have to provide specific and adequate reply to queries of stock exchanges with respect to rumours.

"It may on its own initiative also, confirm or deny any reported information to the stock exchange(s)," the regulator added.