Tyagi laments lack of disclosures by listed firms

‘IPOs more an exit option for investors’

Securities & Exchange Board of India (SEBI) Chairman Ajay Tyagi stressed that companies must ensure disclosure of material events as per regulations ‘not just in letter but also in spirit.’ “Listed companies must have two sets of disclosures: firstly, periodic disclosures where formats have been prescribed and secondly, disclosures of material events, where certain events have been deemed as material and must be disclosed and the others to be disclosed if considered by the company and its board to be material,” he said, speaking at a FICCI event. “On both these aspects disclosures by many companies are lacking. On periodic disclosures such as annual reports, while all the fields are being filled in, in many cases, they appear more like a check-box exercise. This is not acceptable,” he added.