India’s securities regulator, the Securities and Exchange Board of India (SEBI), is contemplating relaxing certain disclosure requirements for listed companies, covering areas like related party transactions and disclosures related to major shareholders. This move is outlined in a consultation paper published on Wednesday.
SEBI is considering extending the time frame for listed companies to publicly disclose litigations or disputes they are involved in. This consultation paper is part of SEBI’s ongoing efforts over the past year to streamline regulations for companies listed in India’s equity capital markets.
Regarding related party transactions, SEBI has proposed exempting public companies from the requirement to obtain audit committee approvals for remuneration of directors and executives, as well as from disclosing their compensation on a semi-annual basis. Additionally, SEBI has suggested that listed companies seek shareholder approval for compensation or profit-sharing agreements entered into when they were privately held.
Among other recommendations, SEBI has proposed that listed companies should publish information such as their memorandum of association and articles of association on their websites.
SEBI has invited feedback from market participants on these proposed changes, with the deadline for comments set for July 17.
