Disclose price-sensitive information to bourses first: Sebi to companies

The Securities and Exchange Board of India (Sebi) has said listed companies will now have to necessarily disclose all price-sensitive information, including monthly sales figures, to bourses first.

The market regulator said it has noticed certain listed companies giving monthly disclosure of their sales/turnover/production figures to their "respective trade bodies" and the same is not disclosed to the bourses.

"...all the events or material information which will have a bearing on the performance / operations of the company as well as price sensitive information shall be first disseminated to the bourse as required under Clause 36 of the Listing Agreement," Sebi said in a circular.

According to the guidelines, the information considered to be 'price sensitive' include any change in nature of business, disruptions due to natural calamity, commencement of commercial operations, developments arising out of change in regulatory framework, litigation or disputes having a material impact and revision in credit ratings.

Sebi also advised stock exchanges to take into account the requirements of the circular and bring the same to the notice of the listed companies.

As per the clause 36 of the Agreement, listed firms are required to the concerned bourses immediately of events such as strikes, lock outs, closure on account of power cuts and all events which would have a bearing on the performance as well as prices. This has to be done both at the time of occurrence of the event and subsequently after the cessation of the event.

The announcements are necessary in order to enable the security holders and the public to "appraise the position of the the company and to avoid the establishment of a false market in its securities."

"In addition, the issuer will furnish to exchange on request such information concerning the Issuer as the exchange may reasonably require," the Listing Agreement said.