Sebi rejects Kotak panel's data sharing norms, governance proposals

Not in favour of Kotak committee's recommendation, with key stakeholders citing possibly far-reaching consequences

The Securities and Exchange Board of India (Sebi) rejected a key proposal made by the Uday Kotak committee for sharing of unpublished and price-sensitive information (UPSI) with controlling shareholders, reveal its board meeting agenda papers. 

“It is felt that giving any shareholder preferential treatment compared to other shareholders for getting access to information would have far-reaching implications and therefore may not be desirable. The recommendation may not be considered,” Sebi has said in the board memorandum.

The Kotak panel had proposed adoption of a transparent framework for sharing of information with a company's promoters and significant shareholders, to “reduce subjectivity