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Sebi tightens disclosure framework for all listed banks: Details here

The new framework will come into effect immediately

Samie Modak  |  Mumbai 

Posts of chairman, MD in listed firms may cease to be all in the family
Sebi headquarter

The Securities and Exchange Board of India (Sebi) on Thursday tightened the disclosure framework pertaining to ‘divergence’ in bad loan recognition.

The capital regulator has said that all listed banks will have to disclose to the stock exchanges if their additional provisioning for non-performing assets (NPAs) assessed by the Reserve Bank of India (RBI) exceeds 10 per cent of the reported profit before provisions and contingencies.

In addition, disclosures will be required if the additional gross NPAs identified by the RBI exceed 15 per cent of the published incremental gross NPAs.

added that the new framework will come into effect immediately.

This move is aimed at aligning the disclosure norms with the RBI’s modified disclosure requirements. In the recent past, many banks, both private and public, were seen reporting ‘divergence’ in bad loan recognition.

First Published: Fri, July 19 2019. 02:14 IST