Sebi widens default disclosure rule

Bank loans worth at least Rs 12 lakh crore have at present been classified as NPAs

The Securities and Exchange Board of India (Sebi) has made it compulsory for listed companies to make a disclosure to the stock exchanges if they default on any interest or principal payment obligation to banks.

At present, under Sebi’s Listing Obligations and Disclosure Requirements, companies have to make specific disclosures if there is a delay or default in payment of interest or principal on only debt securities such as non-convertible debentures, listed non-convertible redeemable preference shares or foreign currency convertible bonds.

There was no stipulation on companies to make disclosures with regard to loans taken from banks and financial institutions. That changes