India's Securities and Exchange Board (SEBI) has extended the deadline for public comments on the proposal to disclose litigations or disputes involving claims against listed firms to July 29. The initial deadline was July 17. SEBI has also suggested allowing companies to conduct virtual or hybrid shareholder meetings permanently. Other recommendations include additional time for disclosure of board meeting outcomes, combining pre-issue and price band advertisements, system-driven disclosure of filings, and making newspaper advertisements for financial results optional. The proposals aim to enhance ease of doing business and reduce compliance burden while balancing investor protection [669da71f].
This move by SEBI to extend the deadline for comments on the litigation disclosure proposal reflects the regulator's commitment to seeking feedback and ensuring a comprehensive and inclusive decision-making process. By allowing more time for public comments, SEBI is giving stakeholders the opportunity to provide their input and perspectives on the proposal, which will help in shaping the final regulations. The extension also indicates the significance of the proposal and the potential impact it can have on listed firms and investor protection in India.
In addition to the extension of the deadline, SEBI has proposed allowing companies to conduct virtual or hybrid shareholder meetings permanently. This recommendation comes in the wake of the COVID-19 pandemic, which has accelerated the adoption of virtual meetings as a means of ensuring business continuity and shareholder engagement. By making virtual or hybrid meetings a permanent option, SEBI aims to enhance the ease of conducting shareholder meetings, reduce costs and logistical challenges, and provide flexibility to companies in engaging with their shareholders.
SEBI has also put forward several other recommendations aimed at streamlining processes and reducing compliance burden. These include additional time for disclosure of board meeting outcomes, combining pre-issue and price band advertisements, system-driven disclosure of filings, and making newspaper advertisements for financial results optional. These proposals reflect SEBI's commitment to making the regulatory framework more efficient and business-friendly, while ensuring investor protection and transparency in the Indian securities market.
Overall, SEBI's extension of the deadline for comments on the litigation disclosure proposal and the introduction of other recommendations demonstrate the regulator's proactive approach in seeking feedback and continuously improving the regulatory framework. These measures aim to strike a balance between ease of doing business and investor protection, and will have a significant impact on listed firms and the securities market in India [669da71f].