Mumbai : To safeguard investors’ interest by bringing in greater transparency, leading stock exchange NSE has issued a framework that provides guidance to listed entities on making right disclosures, reports PTI.
A circular by NSE said that the framework comes up on observations that in the “absence of any standard or guidance on fair disclosures for the appreciation/ assessment of the event by investors, companies are furnishing varying details in their disclosures for similar events.
“Such variations are not helpful to investors to set their expectations on the information content in the disclosures”.
The framework would also help companies make comprehensive disclosures relating to certain ‘material’ events to the stock exchange in prompt and accurate manner while also enabling the investors to make informed decision related to investments.
As mandated under current listing norms, entities are required to immediately inform the exchanges of all the events that have bearing on the performance and operations of the company as well as disclose price sensitive information.
Besides, developments with respect to pricing/realisation arising out of change in the regulatory framework, litigation with a material impact, revision in ratings, are also required to be compulsory disclosed to the stock exchanges.
NSE has said that management of every listed entity would be required to appoint an authority which would take decisions on matters related to disclosures.
Such authority could be the company’s board of directors, CEO, an operating committee of senior level executives or key managerial personnel, NSE said.