Cos may Have to Update IPO Disclosure Every Year
Taking a cue from US regulations, market regulator Sebi is making it mandatory for all listed companies to update every year the offer documents filed at the time of their IPOs and wants a much stricter disclosure regime to safeguard the interest of investors. As per the proposed measure, which has been approved by the Sebi board and would be soon notified, all the listed companies would have to file a comprehensive annual disclosure statement, in addition to the existing requirements, to provide updated information to investors. After a recommendation made by its Primary Market Advisory Committee (PMAC), Securities and Exchange Board of India (Sebi) has decided to replicate the annual 20F filing prescribed by the US market regulator SEC (Securities and Exchange Commission) for such annual disclosure statements.
Economic Times, New Delhi, 27-08-2012