MUMBAI, JAN 21
In a significant investor friendly move, the Securities and Exchange Board of India (SEBI) today made it mandatory for promoters of companies to disclose the details of shares pledged by them.
The SEBI Board, which met here today and reviewed the investigations into the Satyam scandal, said necessary amendments would be made to the listing agreements and the regulations to force companies make not only event based disclosures of informing the stock exchanges as and when shares are pledged, but also make it a periodical disclousure effective from the quarter ended December 31, 2008. It would be mandatory for the promoter company to also inform the stock exchanges, if the lender had sold the shares pledged with him, he added.
He said the disclosure norm of pledged stocks emanated from the scandal and it would have a long term impact. Further improvement in the system could be made as and when the investigations were concluded, he added.
