Listed cos asked to reveal loans given to promoters in compliance report on corporate governance


NEW DELHI: Markets regulator Sebi on Monday asked listed firms to make disclosure about loans and ensures offered by them to promoter or every other entity managed by them on a half-yearly foundation in the compliance report on corporate governance.

The transfer is aimed toward bringing transparency and strengthening disclosures about such loans and ensures, the Securities and Exchange Board of India (Sebi) stated in a round.

The regulator has come out with a brand new disclosure format in this regard which can be efficient from monetary 12 months 2021-22.

“In order to bring about transparency and to strengthen the disclosures around loans/ guarantees/comfort letters/ security provided by the listed entity, directly or indirectly to promoter/ promoter group entities or any other entity controlled by them, it has been decided to mandate such disclosures on a half yearly basis, in the compliance report on corporate governance,” Sebi stated.

Under the brand new format, any mortgage or every other type of debt superior by the listed entity immediately or not directly to promoter, promoter group administrators together with kin, key administration personnels or every other entity managed by them want to be disclosed, together with combination quantity superior throughout six months and steadiness excellent on the finish of six months.

In case of any assure or consolation letter offered by the listed entity in reference to any mortgage(s) or every other type of debt, Sebi stated that the listed entity wants to make disclosure about combination quantity of issuance throughout six months and steadiness excellent on the finish of six months, considering any invocation.

With regard to any safety offered by the listed entity, they want to disclose about sort of safety, whether or not its money or shares; combination worth of safety offered throughout six months and steadiness excellent on the finish of six month.



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