Mumbai, Dec 28 (PTI) Markets regulator Sebi today decidedto hold further discussions on its proposed norms mandatinglisted companies to make immediate disclosure about their loandefaults.
The new rules were to come into effect initially fromOctober but deferred at that time and a revised proposal waspresented before the Sebi board at a meeting here. Theboard, however, decided to defer a decision and felt furtherdiscussion was required, the Sebi officials said after themeeting.
Earlier, Sebi had put off implementation of its directive"until further notice" that required listed firms to informexchanges if they default on loan payments to banks andfinancial institutions, just a day before it was supposed tobe implemented on October 1.
Banks had asked for more time for the new rules as theIndian credit market was different from its Westerncounterparts where such a disclosure is mandatory.
In August, the regulator had directed listed companies todisclose from October 1 any payment defaults to banks andfinancial institutions within one working day of such a miss.
The move came against the backdrop of the government andthe Reserve Bank of India stepping up efforts to tackle themenace of bad loans amounting to over Rs 8 lakh crore. PTI SSMSP BJMKJ.
This is unedited, unformatted feed from the Press Trust of India wire.