FAR REACHING SEBI AMENDMENTS OF 14 JUNE 2023

SEBI LODR (Second Amendment) Regulations 2023 to increase transparency and accountability among the listed entities

SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, were amended on 14.6.2023 and it is called Second Amendment Regulations, 2023

To my mind, these reforms will go a long way to strengthen corporate governance, promote investors’ confidence and create robust regulatory framework for sustainable growth and fair best practices.  It has become talk of the town amongst all the stake holders and also planners of succession by way of family settlement agreements.

The investors are taken for ride – the salutary amendments will curb the same to a large extent.

Important Disclosure & Reporting Requirements, amongst others, in brief are as follows –

I. New Regulation 30A for disclosure of agreements among the share holders, promoters, promoter group entities, related parties, Directors, key managerial personnel, employees of the listed entity or its holding subsidiary / associate company, joint venture agreements, family settlement agreements (to the extent of its impact on the management and control of the listed entity), agreements with media companies, etc; including their revisions or amendments or termination of such agreements to the Stock Exchange.

II.  Listed Entity to give financial results in the IPO offer document

III.     Timeline for Disclosures and Verification of Market Rumours in order to stay contemporary and ensure verification of such rumours in a timely manner.

IV. Mandatory Disclosure of details of cybersecurity incidents / breaches or data loss in the quarterly compliance report.