Sebi mulls disclosure norms for unlisted cos

New Delhi: Capital markets regulator Sebi is looking to introduce disclosure requirements for unlisted companies, which are part of a business conglomerate.While listed entities are subject to comprehensive disclosure requirements, the same levels of disclosure requirements are not applicable for unlisted companies.

“There is a need to identify, monitor and manage risks introduced into the securities market ecosystem by unlisted companies in a conglomerate with a complex set of listed and unlisted associates,” Sebi said in its annual report for 2022-23.

Also, the regulator plans to facilitate transparency around the conglomerate by enhancing the group-level reporting of transactions.

“Disclosure of details of cross-holding and material financial transactions within the conglomerate are also some of the matters that Sebi would examine to be disclosed on an annual basis,” the annual report noted.

The country’s top business conglomerates include Tata Group, Reliance Industries, Adani Group, Aditya Birla Group and Bajaj Group. In addition, the regulator is planning to review the eligibility criteria for introduction of stocks in the derivatives segment.

Derivatives contracts on scrips can be traded on recognised stock exchanges only if the underlying securities satisfy certain criteria.