SEBI Consultation paper on review of disclosure requirements under LODR 2015
With the objective of streamlining the disclosure requirements for material events or information required under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, SEBI recently released a consultation paper for seeking public comments/views. The Consultation Paper, while removing discretion and the scope for non-quantitative tests for determining materiality, also seeks to make several other changes in the requirement for seamless disclosures.
SEBI has been receiving many complaints/references regarding inadequate/ inaccurate / misleading / delayed disclosures made by the listed entities. Listed entities from their end have also expressed that uniformity in the guidance to the listed entities is required for determining materiality of events or information. The key proposals include Quantitative criteria for determination of materiality of an event/ information, amendments in Materiality Policy of the listed entity, Reduction in timelines for disclosure of material events or information, Mandatory verification of market rumours, Modification to the meaning of “acquisition”, Expanding the scope of materiality, Disclosure of cyber security incidents or breaches and loss of data/ documents in quarterly corporate governance report etc among other important things.
