Market regulator SEBI Tuesday proposed that listed companies should intimate the stock exchanges, within 15 minutes of closure of board meetings, on decisions taken on dividends, financial results, cash bonus, share buy back, fund raising, issue of bonus shares and others.

 

 In order to have a better disclosure regime, the Securities and Exchange Board of India (SEBI)has come out with a discussion paper on which comments are invited by Sep 12.

 

 As to the need for review of the existing regulations, SEBI said examination of disclosures made by listed entities under clause 36 and other related clauses over a period has brought out disparities in disclosures across listed entities and stock exchange(s), leading to unequal information being available with the investors.

 

 Further, the material information disseminated by listed entities through various modes is, at times, not notified to the stock exchanges.

 

 One of the reason for such disparity appears to be lack of sufficient clarity on "materiality" and "price sensitive information", SEBI said.

 

 According to the proposed norms, listed companies have to inform the bourses within 15 minutes of the closure of the board meeting matters relating voluntary delisting, reissue of forfeited shares/securities, alterations of capital, and financial results.

 

 The SEBI said timely and adequate disclosure is one of the defining characteristic of efficient securities markets across the globe.

 

 "To this end, this discussion paper seeks to review the continuous disclosure regime for listed companies in India and provide appropriate regulatory framework to assist listed entities to understand and comply with their disclosure obligations under equity listing agreement/ regulations (proposed)," SEBI said.

 

 The market regulator said that the proposed review on disclosures is aimed at achieving the intent more than in form.

 

 The SEBI has given guidance on list of events which may be material and/or price sensitive, guidance on determination of materiality thresholds, guidance on information which may be considered as price sensitive and also indicative list of information which may be disclosed on occurrence of events/information that are/is material and/or price sensitive in order to comply with the intent.