Sebi asks listed firms to reveal commodity risks, hedging in annual report

Market regulator Securities and Exchange Board of India has asked all listed companies to disclose their commodity risk and hedging in their annual reports. The move is expected to improve risk management by companies and make their positions transparent as far as outstanding risks are concerned. It will also help all commodity derivatives to improve depth and width apart from generating liquidity.

Sebi on Thursday issued a circular mandating listed entities to make disclosures regarding commodity price risk and hedging activities in the corporate governance report section of the annual report of a listed entity. Companies have to disclose risk