The capital markets regulator, the Securities and Exchange Board of India (SEBI), has imposed a stricter timeline of 12-24 hours for disclosure of material events or information, increasing the compliance burden on listed companies starting Saturday. 

SEBI directs companies to disclose agreements entered into by shareholders, promoters, related parties, directors, key managerial personnel, and employees of the listed entity or its subsidiary to stock exchanges, which can impact the management and control of such firms.

If the listed entity is involved, the agreements must be disclosed within 12 hours and 24 hours if the listed entity is not a party.

Under Paragraph A of Schedule III under the LODR (Listing of Obligations and Disclosure Requirements) Regulations, disclosure of family settlement agreements was already required. The regulator had amended the LODR earlier after its board approved a proposal.

Besides, for material events or information that emanate from the listed entity, including those related to acquisitions, Scheme of Arrangement, consolidation of shares, and buyback of securities, the timeline for disclosure by the entity has been set at 12 hours, according to the SEBI circular.

Further, if the information does not emanate from within the listed entity, timelines have been fixed 24 hours from the event’s occurrence. This includes a revision in rating, fraud, or defaults by a listed entity, its promoter, or directors; restructuring about loans from banks; one-time settlement with a bank; and winding-up petition filed by any party/creditor. 

The outcome of meetings of the board of directors needs to be announced within 30 minutes from the closure of such meetings.