Sebi extends timeline to submit comments on proposal to facilitate ease of doing business

New Delhi: Markets regulator Sebi on Monday extended the deadline for submission of public comments to July 29 on the proposal of providing additional time for disclosure of litigations or disputes involving claims against listed firms.

Sebi, on June 26, issued a consultation paper on recommendations of the expert committee for facilitating ease of doing business and harmonisation of the provisions of ICDR (Issue of Capital and Disclosure Requirement) and LODR (Listing Obligations and Disclosure Requirements) Regulations and had sought public comments by July 17.

Now, it has been decided to extend the timeline for submission of comments to July 29, the Securities and Exchange Board of India (Sebi) said in a statement.

In its consultation paper, the regulator proposed allowing companies to conduct virtual or hybrid shareholder meetings on a permanent basis.

Also, the markets watchdog has suggested additional time for disclosure of the outcome of the board meeting that concludes after trading hours.

Additionally, the markets regulator recommended combining pre-issue advertisement and price band advertisement as a single advertisement, proposed disclosing certain information with a quick response (QR) code link and proposed disclosure of pre-issue shareholding and post-issue shareholding for promoter, promoter group and additional top 10 shareholders.

Further, Sebi proposed system-driven disclosure of certain filings like shareholding patterns, revision in credit ratings and suggested that the requirement of publishing detailed advertisements in newspapers for financial results should be made optional for listed entities.

The proposals, based on the recommendations of an expert committee chaired by S K Mohanty, a former whole-time Member of Sebi, aimed at facilitating ease of doing business, bringing in clarity and reducing the overall compliance burden, including the cost of compliance while effectively balancing investor protection.