Sebi makes it mandatory for listed firms to disclose each loan default

Regulations on rights issue, portfolio managers revamped

The Securities and Exchange Board of India (Sebi) has made it mandatory for all listed companies to make public disclosures on loans defaults. The move will help stakeholders stay better informed on the financial health of a company.

The move comes two years after the market regulator had abruptly withdrawn a circular ahead of its implementation, directing companies to disclose all defaults within 24 hours of missing the payment date, after concerns were raised by banks, companies and other stakeholders.

Sebi has now said any default of payments of interest or principal on loans taken from financial institutions, including banks, will have