SEBI to come out with stringent guideline on CORPORATE DISCLOSURE by listed companies

SEBI Chairman UK Sinha, addressing a capital market summit organized by FICCI said that there are 1100 companies which are not compliance with the requirement of clause 35 of shareholding pattern, which means the direction with regard to shareholding pattern has not complied with. Also, there are 900 companies which are not compliant with the corporate governance norms as per clause 49.

He signaled that the Securities and Exchange Board of India (Sebi) plans detailed guidelines on corporate disclosures, aiming to improve the quality of giving out information by companies. He indicated that to improve the quality of corporate disclosure, SEBI will, probably announce guidelines on Monday or next week.
He also said that they will have a relook at the delisting guidelines. About delisting, Sebi also had earlier indicated that SEBI will now become a party to the delisting agreement between the company and the exchange. It is notable that in a recent case in which the company’s advocated argued that SEBI has no say in matter of listing agreement as it is not a party to the agreement.
The Chairman also said that Sebi may look at the rules for preferential allotment of shares by companies.
Clause 35 of the Listing Agreement requires listed entities to submit to the stock exchanges on a quarterly basis, a statement of its shareholding pattern providing details of shares held by promoter/promoter group and public and details of shares held against Depository Receipts.