Indefensible move

There is no merit in Sebi's about-turn on loan default directive

In a rather curious move, the Securities and Exchange Board of India (Sebi) has decided to hold back its directive which would have made it necessary for listed companies to disclose loan defaults within a day. The circular was withdrawn on September 30, which was just a day before it was supposed to come into effect. Sebi’s decision to suspend the order “until further notice” is an unexpected one as, unlike in the case of a default on a bond where information is readily available, a default on a bank loan does not typically become public information straightaway, even though