Sebi asks mkt intermediaries to set up system for disclosures

To ensure more transparency, Sebi today asked market intermediaries to put in place mechanisms whereby their existing systems automatically generates details about changes in shareholding of listed entities.
The system-driven disclosures regime -- to be effective from January 1, 2016 -- would be initially for generating information pertaining to acquisition and disposal of shares in a listed company by its promoters.
Since the entire information as required under the current disclosure obligations is not available in the current systems, the new system would be implemented in phases, the Securities and Exchange Board of India (Sebi) said in a circular.
In the first phase, the systems would disclose the changes in shareholding of promoter, promoter group of the listed entities.

"The disclosures in the first phase shall pertain to acquisition/disposal of equity shares by promoters/promoter group based on specified thresholds under SAST (Substantial Acquisition of Shares and Takeovers) Regulations and PIT (Prohibition of Insider Trading) Regulations and pledge of equity shares by promoters/promoter group under the SAST Regulations," it said.
Initially, this system would run in parallel with the existing system and promoters would continue to comply with the disclosure obligations as applicable to them.

Based on the experience gained in the first phase, subsequent phase would be implemented to include information for non-promoters and instruments other than equity shares.

The disclosures generated through the system would have to be displayed separately from the regular disclosures filed with the exchanges.
Giving details about steps required to be taken for implementation of the first phase, Sebi said first step would be to build an accurate database of the existing holdings at ISIN (International Securities Identification Number) level of all the promoters.
The listed company through its RTA (Registrar & Share Transfer Agents) will be required to provide information about promoters to the depositories. This information must be authenticated and would be provided within 15 days from the date of this circular.

Based on the PAN/account numbers, the depositories will tag such demat accounts in their depository systems at ISIN level as of the promoters. In case of any subsequent changes in shareholding, the company through RTA would provide the information of the new promoter) to the depositories.
The respective depositories will generate the required information and send it to the RTAs on a daily basis at the end of each working day and the RTAs will then aggregate the dematerialised shareholding data received from both the depositories and the physical shareholding of promoters.
After that, the stock exchanges will disseminate the data on its website in accordance with the respective regulations.