Changes planned for LODR disclosure norms

LODR disclosure norms

The Securities and Exchange Board of India (SEBI) has sought public comment on changing the disclosure requirements as applicable to listed companies. Among the major changes proposed is a tightened timeline, ranging from 30 minutes to 12 and 24 hours, on an individual case basis.

The important events or information that must be properly notified to stock exchanges by listed firms are outlined in regulation 30 of the Listing Obligations and Disclosure Requirements (LODR) Regulations.

According to the SEBI announcement, the regulator had received complaints in recent years about poor or delayed filings. Meanwhile, companies had argued that consistency in the advice given to listed companies was necessary for judging the importance of events or information.

While regulatory measures against the failure to disclose important information or events serve as a deterrent, they cannot override the significance of ensuring the prompt disclosure of material events by all listed businesses at all times, said the SEBI. Additionally, it was noted that although deadlines for the distribution of information have been established under different LODR regulations, businesses have frequently failed to comply.