IndiaCorpLaw

Tag: Disclosure Requirements

  • Monitoring Secondary Market Disclosures

    [Posted by Umakanth Varottil] One of the concerns regarding the corporate disclosure regime is that while the primary market disclosure requirements (e.g. for a prospectus) are extensive and stringent, the secondary market disclosures by companies that are already listed on the stock exchanges are far from being elaborate. In order to bridge this gap, SEBI…

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  • Further Order by SEBI on Shareholding Disclosures

    [Posted by Umakanth Varottil] (The following post is contributed by Yogesh Chande, an advocate practising in Mumbai) SEBI’s whole time member in an order dated 26 March 2012 (Order), has revoked the directions which were issued by an interim order dated 8 March 2010 (which has been discussed earlier) against the entities mentioned in paragraph 4 of the Order.…

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  • SAT on Disclosures Regarding “Promoters”

    [Posted by Umakanth Varottil] The Securities Appellate Tribunal (SAT) has issued its decision overturning an order of SEBI’s adjudicating officer that had found Enam Securities to have violated securities laws in connection with the IPO of Yes Bank. One of the key issues in contention was whether Rabobank ought to have been disclosed as a…

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  • Supplemental Shareholding Disclosure Norms

    [Posted by Umakanth Varottil] In its board meeting held on August 4, 2010, SEBI introduced three changes to its norms requiring disclosure of shareholding patterns of listed companies. 1. Listing: The first change relates to companies undertaking an IPO. The current regime requires disclosure of shareholding pattern in the offer document and thereafter (after listing)…

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  • SEBI Order on Shareholding Disclosures

    [Posted by Umakanth Varottil] On March 8, 2010, SEBI passed an order in the case of Bank of Rajasthan (BoR). SEBI commenced investigation into the shareholding pattern of BoR following a reference received from the Reserve Bank of India (RBI). Pursuant to the RBI Guidelines on Ownership and Governance in Private Sector Banks dated February…

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  • Climate Change and Corporations

    [Posted by Umakanth Varottil] Ultimately, when it comes to corporations, incentives seem to matter a whole lot, with one key incentive being the profitability (or avoidance of loss) of any action to shareholders. In his column in the New York Times, Paul Krugman notes: Action on climate, if it happens, will take the form of…

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  • Directors are persons in control; failure to disclose their shareholding violates Takeover Regulations

    [Posted by Somasekhar Sundaresan] In a far-reaching decision, the Securities and Exchange Board of India has ruled in an adjudication order that members of the board of directors of a listed company (“Target Company”) would be persons having control of the Target Company. Consequently, directors of the Target Company ought to make disclosures of their…

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