The Securities and Exchange Board of India (“SEBI”) has, through a Notification dated 20th November 2020, issued a report on disclosures pertaining to analyst meets, investor meets and conference calls, prepared by a sub-group which was formed by the Primary Markets Advisory Committee (PMAC).
The sub-group deliberated various aspects with respect to information asymmetry amongst various classes of stakeholders, best practices in Indian securities market, regulatory regimes in various overseas jurisdictions and the way forward to bridge the gaps of information asymmetry.
The following are the recommendations, laid down by the Sub-group, to be included along with the current regulatory requirements specified under SEBI (LODR) Regulations, 2015:
- Audio/video recordings shall be made available on the website of the listed entity and respective stock exchanges immediately after the post-earnings conference call/quarterly call, before the next trading day or within twenty-four hours from the occurrence of event or information, as required under the Reg 30 of SEBI (LODR) Regulations, 2015, whichever is earlier.
- Written transcripts of such calls should be made available on the website of the listed entity and respective stock exchanges within five working days after the earning call.
- Listed company shall make available audio/video recordings and the written transcripts on their websites for a period of at least eight years in addition to the details disseminated on respective stock exchanges.
- Listed companies can decide as to whether conference calls are open to everyone to attend or limit such calls to their existing shareholders.
- Listed companies to provide number of one-to-one meetings with select investors as part of corporate governance report submitted by them to stock exchanges on a quarterly basis along with affirmation that no UPSI was shared by any official of the company in such meetings. Company shall maintain a record of all such one-to-one meetings, as the same could be required for future reference. The data should be preserved for a period of at least eight years.
Furthermore, the sub-group has recommended that the aforementioned requirements should be made applicable in a phased manner and the requirements shall be initially recommendatory for a period of one year and mandatory thereafter for all listed companies.
In order to take into consideration, the views of various stakeholders, comments are sought from the public on the report in the following format:
|Name of the person/ entity|
in the report to which the
|Comment||Rationale for the comment||Revisions to the recommendations, if any (Please provide revisions to amendments as
well, if possible)
Comments may be sent by email to email@example.com or by post to the following address latest by 21st December, 2020:
Compliance and Monitoring Division – II,
Corporation Finance Department,
Securities and Exchange Board of India
SEBI Bhavan, Plot No. C4-A, “G” Block,
Bandra Kurla Complex, Bandra (East),
Mumbai -400 051