Disclose price sensitive info to bourses first: Sebi to cos
The Securities and Exchange Board of India Thursday reiterated that listed companies have to compulsorily disclose all price sensitive information to stock exchanges first, and then to other information channels.
January 04, 2013 / 10:31 IST
Moneycontrol Bureau
The Securities and Exchange Board of India Thursday reiterated that listed companies have to compulsorily disclose all price sensitive information to stock exchanges first, and then to other information channels."It has been brought to our notice that certain listed companies have been giving monthly disclosure of their sales/turnover/production figures to their respective trade bodies/industry associations and the same is not disclosed to the stock exchanges," the Sebi media release said."It is therefore, reiterated that all the events or material information which will have a bearing on the performance / operations of the company as well as price sensitive information shall be first disseminated to the stock exchanges as required under Clause 36 of the Listing Agreement," the release added.This is what Clause 36 of the Listing Agreement of the stock exchanges states:"The Issuer will intimate to the Stock Exchanges, where the company is listed immediately of events such as strikes, lock outs, closure on account of power cuts, etc. and all events which will have a bearing on the performance / operations of the company as well as price sensitive information both at the time of occurrence of the event and subsequently after the cessation of the event in order to enable the security holders and the public to appraise the position of the Issuer and to avoid the establishment of a false market in its securities. In addition, the Issuer will furnish to Exchange on request such information concerning the Issuer as the Exchange may reasonably require."Also Read: Sebi for tighter share buyback rule to make cos answerable Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
