Lot of disclosures to stock exchanges ‘probably leaves a lot for imagination’: Sebi official

At a conference in the national capital, Rajesh Dangeti, Chief General Manager of Corporation Finance Department (CFD) at the Securities and Exchange Board of India (Sebi), also emphasised the need to ensure that information is not only given out by companies frequently but also fairly and in a manner which is easily understood by the investors.

He also wondered whether there is a scope for reducing the time frame for certain disclosures that are currently made on a quarterly basis.

Under Sebi norms, listed entities are required to make various disclosures in a timely manner in order to ensure the interests of shareholders, especially minority shareholders, are protected.

“It’s all about how you ensure that information is given not only frequently but fairly and in a manner which is easily understood by the investors… you get to see a lot of disclosures where probably it leaves a lot for imagination.

“Personally, when I go through the disclosures being given in the stock exchanges, we find, yes, in letter, there is a disclosure. But in spirit, whether there is a disclosure. I think that should be kept in mind,” Dangeti said. He was speaking at the conference on ‘Agile Governance: Fostering Transparency & Building Trust’ organised by industry body Ficci. Mentioning that he would like to leave some thoughts with the audience, Dangeti wondered the time has come to reduce the frequency of disclosures that are now made quarterly.

“Today, we have a depository mechanism working well. We have technology which is being adapted progressively by all the companies. But still we are in a stage where a lot of disclosures, including probably shareholding patterns, financials are being given, probably quarterly.

“Do you think the time has come? It’s a question to the corporate world. Do you think the time has come that the frequency can be reduced? You should look at it,” he said. PTI