Market regulator Sebi on Tuesday said it is revamping the listing agreement in general and Clause 36 in particular to make it mandatory for corporates to disclose “non-events” for the benefit of investors.
“To build trust, we are reviewing Clause 36 of the listing agreement under which corporates have to disclose non-events. We found that disclosures are just fill in the blanks now. We have issued a discussion paper on Clause 36 so that investors get meaningful information,” Sebi Whole-time member Prashant Saran said at a conference here.
Corporates would be required to disclose non-events such as loss of market share or technology obsolescence on a periodic basis (annually to start with) to shareholders through an exchange filing, Saran said. “Investors have lost trust in the last decade and right now the imperative is to build trust and we have to build it assiduously.