Exclusive | Shapoorji Pallonji Group kick-starts sale process for Eureka Forbes; top PE funds in fray

The Shapoorji Pallonji Group, which is tackling liquidity concerns and recently faced the ire of shareholders of the newly-listed arm Sterling & Wilson, with promoters seeking an extension to repay dues it owes to the company, is in damage control mode.

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Sebi tightens disclosure norms on loan defaults

MUMBAI: Markets regulator Sebi on Wednesday approved stricter disclosure norms for listed companies on loan defaults and revised its regulations for portfolio managers as well as for rights issue of shares.

Sebi also extended the Business Responsibility Report (BRR) requirement to top 1,000 companies, from 500 currently.

Business responsibility reports mandatory for top 1,000 listed companies: Sebi

For better compliance with corporate governance norms, Sebi on Wednesday decided to make it mandatory for top 1,000 listed companies to prepare annual business responsibility report, covering their activities related to environment and stakeholder relationships. Presently, the business responsibility reports (BRs) are mandatory for top 500-listed entities based on market capitalisation on the BSE and NSE.

In case of default in repayment of principle or interest on loans beyond 30 days, listed companies will have to disclose “fact of such a default” within 24 hours, the regulator said after its board meeting here.

In another decision taken at the meeting, Sebi would revise the norms for issuance of shares on right basis to existing shareholders. The timeline would be reduced from 55 days currently to 31 days.

Sebi decides to reduce time taken for rights issue process to 31 days

Markets regulator Sebi on Wednesday decided to reduce the overall time taken for rights issue to 31 days from the current 55, a move aimed at making the process more efficient. Besides, the regulator has made ASBA (Applications Supported by Blocked Amount) facility as the mandatory mode of payment for all investors applying to shares on rights basis, Sebi said in a statement issued after its board meeting.

Besides, the watchdog would amend the norms for portfolio managers wherein net worth and minimum investment requirements would be raised for such entities.

About the new disclosure requirements on loan defaults, Sebi chairman Ajay Tyagi said the objective is to “get more openness to help investors”.

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