Shillong, August 7: The Securities and Exchange Board of India (SEBI) is taking steps to improve transparency within conglomerates by bolstering the reporting of transactions at the group level. SEBI’s focus includes the disclosure of cross holdings and significant financial transactions within conglomerates, which it intends to require on an annual basis.
SEBI recognizes the importance of identifying, monitoring, and mitigating risks introduced by unlisted companies within complex conglomerates that have both listed and unlisted associates. While stringent disclosure requirements are applicable to listed entities, equivalent levels of disclosure are not presently mandated for unlisted companies.
As per IANS, in the upcoming year, SEBI has plans to assess the pricing mechanism used in delisting cases. This review encompasses a thorough evaluation of the reverse book building process and exploration of alternative methods for determining exit prices in instances of voluntary delisting.
The regulatory body is also poised to undertake a review of the existing framework for compulsory delisting, as adopted by stock exchanges.
To facilitate these endeavors, SEBI has established a committee tasked with revisiting Takeover Regulations. This committee is charged with evaluating the current Takeover Regulations in light of past legal judgments. Furthermore, the goal is to simplify and fortify these regulations by aligning them with global best practices.
SEBI is proactively addressing mechanisms to prevent and detect fraud or market abuse. Proposed amendments to the SEBI (Stock Brokers) Regulations, 1992 are on the horizon, which will introduce surveillance systems for trading activities, internal controls, obligations for notified stock brokers and their staff, escalation and reporting protocols, as well as a whistleblower policy.
In the fiscal year 2022-23, SEBI introduced a total of 163 policy measures. These encompassed 27 measures targeting primary markets (equity and hybrid securities), 40 for secondary markets, 39 for corporate debt markets, 27 for asset management (including Alternative Investment Funds or AIFs), 22 for intermediaries, and four each for Foreign Portfolio Investors (FPIs) and investor grievance resolution.
SEBI’s commitment to inclusive policy development is evident through its engagement with 20 specialized advisory committees comprising seasoned domain experts. These committees contribute to SEBI’s decision-making process by reviewing proposed policy changes and ensuring alignment with the interests of diverse stakeholders.
Throughout 2022-23, a total of 90 meetings were held by these advisory committees, during which they deliberated over 302 agenda items. In a continued demonstration of its commitment to stakeholder involvement, SEBI issued 33 consultation papers for public input during the same period.