The Securities and Exchange Board of India has made it mandatory for all listed companies to disclose information on loan defaults.
The regulator said that any default on the payment of interest or repayment of principal amount on loans from banks or financial institutions if continued beyond 30 days should be disclosed to exchanges.
The decision backs SEBI’s effort to allay investor concerns over the default by listed entities. The move aims to help investors get access to such important developments while investing.
“In order to address the gaps in availability of information with respect to defaults, the Board has, inter-alia, decided that in case of any default in repayment of principal or interest on loans from banks or financial institutions which continues beyond 30 days from the pre-agreed payment date, listed entities shall, promptly, but not later than 24 hours from the 30th day, disclose the fact of such default.”
