Street Signs: Sebi move to defer loan default disclosure may stump traders

With the Securities and Exchange Board of India (Sebi) deferring the implementation of a new rule mandating India Inc to disclose any loan default within 24 hours two days before its implementation, many traders are likely to be caught on the wrong foot. Taking advantage of the already weak sentiment, traders had built short positions with the view that the new rule could impact several stocks negatively. However, Sebi’s breather to India Inc could trigger a positive reaction, say market players. Repayment defaults are common but never make it to the public domain as companies make sure they don’t lose