Latest news with #LODRRegulations
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Business Standard
29-05-2025
- Business
- Business Standard
Sebi probing delayed disclosures on accounting lapses at IndusInd Bank
The Securities and Exchange Board of India (Sebi) could issue another order in the matter of IndusInd Bank for potential violations of listing obligations and disclosure requirements (LODR) regulations, hints the 32-page interim order issued by the regulator. Email trails analysed by Sebi—excerpts of which are presented in the 28 May order—reveal that senior management, including the chief financial officer (CFO), were aware of these discrepancies as early as November 2023. Despite this, the bank failed to disclose the same promptly, categorising the information pertaining to derivatives losses as 'unpublished price-sensitive information' (UPSI) only on 4 March. The bank made a stock exchange disclosure on 10 March, following which IndusInd's stock declined 27 per cent. Notably, the bank conducted an external validation by consultant KPMG in February 2024, which identified a financial impact of over ₹2,000 crore due to discrepancies in its derivatives portfolio. However, the bank only disclosed this information in March 2025—approximately 15 months later. In December 2023, the CFO proposed submitting details of the discrepancies to the Reserve Bank of India (RBI). The CFO also shared calculations of the projected capital to risk-weighted assets ratio (CRAR) due to the negative impact of the discrepancies with the then managing director and chief executive officer (MD & CEO). Sebi's order notes that Sumant Kathpalia, the former MD & CEO, acknowledged the seriousness of the lapses and requested revalidation of the calculations. Legal experts say the regulator's focus is on the materiality of disclosures and the classification of important information as UPSI, as non-disclosure puts investors at risk. 'Sebi has been increasingly emphasising the 'materiality + timeliness' test in its disclosure regime. So certain fact checks, like the bank's internal governance protocols and how quickly senior management or the board was informed, form key parts of Sebi's assessment,' said Hardeep Sachdeva, Senior Partner at AZB & Partners. Sachdeva added that while the level and attribution of knowledge of discrepancies will have to be ascertained, if the discrepancies were known in 2023, the bank was obligated to disclose material developments promptly—typically within 24 hours of the occurrence or recognition of a material event. The LODR Regulations specify timelines to be followed for disclosing material information by listed companies. If the event or information originates within the listed entity, it must be disclosed within 12 hours of occurrence. If it originates externally, it must be disclosed within 24 hours of receipt of the information, according to legal experts. 'Any delay must be accompanied by a justification. Regulation 51 further mandates that information having a bearing on the performance or operations of the listed entity must be disclosed within 24 hours,' said Prithiviraj Senthil Nathan, Partner at King Stubb & Kasiva, Advocates and Attorneys. Legal experts state that Sebi has the authority to impose monetary penalties on IndusInd Bank for its failure to comply with disclosure requirements. 'As per Section 15A of the SEBI Act, 1992, any person who is required to furnish any document or disclose any information under the Sebi Act or any rules or regulations made thereunder within the specified timelines, and fails to do so, shall be liable to a penalty not less than ₹1 lakh, which may extend to ₹1 lakh for each day of continued failure, subject to a maximum of ₹1 crore,' added Nathan. In an ex-parte interim order, Sebi barred Kathpalia, Sanjay Khurana, and three other senior executives from trading in securities for alleged insider trading. The regulator has also directed them to disgorge a total of ₹19.78 crore.
Time of India
25-04-2025
- Business
- Time of India
Sebi imposes Rs 10 lakh fine on Future Retail
"It was observed that Noticee (Future Retail) had disclosed the initiation of arbitration proceeding before SIAC initiated by Amazon on November 1, 2020, only after active intervention of stock exchanges," Sebi said. Tired of too many ads? Remove Ads Mumbai: Sebi has imposed a penalty of ₹10 lakh on Future Retail for alleged delay in disclosing arbitration proceedings and interim order by Singapore International Arbitration Centre( SIAC ).Amazon had raised concerns with Sebi regarding a scheme of arrangement between Future group and Mukesh Dhirubhai Ambani group. On October 5,2020, Amazon had initiated arbitration proceeding against Future Groups before April 7,2021, Sebi issued a show cause notice to Future Retail alleging violation of its disclosure norms. The regulator alleged that Future Retail didn't disclose the arbitration proceedings inspite of receiving the information about the commencement of the proceedings on October 5, 2020, from SIAC and even after filing its objection before SIAC on October 6, 2020."The same was required to be disclosed as soon as reasonably possible and not later than 24 hours, i.e., on or before October 6, 2020, as material event as required under LODR Regulations," Sebi said in an order on Thursday."It was observed that Noticee (Future Retail) had disclosed the initiation of arbitration proceeding before SIAC initiated by Amazon on November 1, 2020, only after active intervention of stock exchanges," Sebi said.
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Business Standard
21-04-2025
- Business
- Business Standard
Sebi may extend relief to NCDs from sending physical financial statements
Markets regulator Sebi on Monday proposed limited relaxation to issuers of listed non-convertible debt securities from the requirement to send hard copies of key financial documents to investors. In its consultation paper, the regulator has proposed extending an exemption pertaining to Regulation 58(1)(b), which mandates sending hard copies of financial statements and related documents to holders of non-convertible securities who have not registered their email addresses. The move is in line with the Ministry of Corporate Affairs' (MCA) decision to extend similar relaxations until September 30, 2025. Based on the MCA's extension and stakeholder requests, Sebi proposed "no penal" action for entities having listed non-convertible securities for not sending physical copies of financial statements, including the board's report, the auditor's report and other documents. Sebi said that entities having listed non-convertible securities and have not sent hard copy of statement to those holders of non-convertible securities, who have not registered their email address, "shall not be subject to any penal action for non-compliance with Regulation 58(1)(b) under the LODR Regulations for the period from October 1, 2024, to a specified date in 2025". This would be followed by a second phase of relaxation lasting until September 30, 2025, subject to further disclosures made through advertisements. The entities need to include in their advertisement a web link to the statement showing key details of all documents to ensure that holders of these securities can easily access the information, Sebi added. The regulator has invited public feedback till May 12 on its proposal regarding limited relaxation from compliance with specific provisions under Sebi's LODR norms. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Time of India
21-04-2025
- Business
- Time of India
Sebi mulls extending relaxation to listed NCDs from sending physical copies of fin statement
Markets regulator Sebi on Monday proposed limited relaxation to issuers of listed non-convertible debt securities from the requirement to send hard copies of key financial documents to investors. In its consultation paper, the regulator has proposed extending an exemption pertaining to Regulation 58(1)(b), which mandates sending hard copies of financial statements and related documents to holders of non-convertible securities who have not registered their email addresses. The move is in line with the Ministry of Corporate Affairs' (MCA) decision to extend similar relaxations until September 30, 2025. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villas For Sale in Dubai Might Surprise You Villas in Dubai | Search Ads Get Deals Undo Based on the MCA's extension and stakeholder requests, Sebi proposed "no penal" action for entities having listed non-convertible securities for not sending physical copies of financial statements, including the board's report, the auditor's report and other documents. Sebi said that entities having listed non-convertible securities and have not sent hard copy of statement to those holders of non-convertible securities, who have not registered their email address, "shall not be subject to any penal action for non-compliance with Regulation 58(1)(b) under the LODR Regulations for the period from October 1, 2024, to a specified date in 2025". This would be followed by a second phase of relaxation lasting until September 30, 2025, subject to further disclosures made through advertisements. Live Events The entities need to include in their advertisement a web link to the statement showing key details of all documents to ensure that holders of these securities can easily access the information, Sebi added. The regulator has invited public feedback till May 12 on its proposal regarding limited relaxation from compliance with specific provisions under Sebi's LODR norms.
Economic Times
21-04-2025
- Business
- Economic Times
Sebi mulls extending relaxation to listed NCDs from sending physical copies of fin statement
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Markets regulator Sebi on Monday proposed limited relaxation to issuers of listed non-convertible debt securities from the requirement to send hard copies of key financial documents to investors. In its consultation paper, the regulator has proposed extending an exemption pertaining to Regulation 58(1)(b), which mandates sending hard copies of financial statements and related documents to holders of non-convertible securities who have not registered their email move is in line with the Ministry of Corporate Affairs' (MCA) decision to extend similar relaxations until September 30, on the MCA's extension and stakeholder requests, Sebi proposed "no penal" action for entities having listed non-convertible securities for not sending physical copies of financial statements, including the board's report, the auditor's report and other said that entities having listed non-convertible securities and have not sent hard copy of statement to those holders of non-convertible securities, who have not registered their email address, "shall not be subject to any penal action for non-compliance with Regulation 58(1)(b) under the LODR Regulations for the period from October 1, 2024, to a specified date in 2025".This would be followed by a second phase of relaxation lasting until September 30, 2025, subject to further disclosures made through entities need to include in their advertisement a web link to the statement showing key details of all documents to ensure that holders of these securities can easily access the information, Sebi regulator has invited public feedback till May 12 on its proposal regarding limited relaxation from compliance with specific provisions under Sebi's LODR norms.
