SEBI Proposes To Overhaul The Continuing Disclosure Framework

On November 11, 2022, the Securities and Exchanges Board of India (“SEBI“) released a consultation paper (“Consultation Paper“) on a review of Regulation 30 (hereinafter referred to as “Regulation 30“) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“LODR Regulations“). Regulation 30 mandates every listed entity to disclose material events or information such as acquisitions, mergers, amalgamation, forfeiture of securities, revision in ratings, etc.

The Consultation Paper was released after SEBI received numerous complaints regarding improper, delayed, misleading, and inaccurate disclosures by listed entities. In addition, listed entities had also expressed reservations about Regulation 30 as they were confused about the policy they had to develop for the determination of material events or information. Considering the complaints and reservations expressed by investors and listed entities, SEBI has reviewed Regulation 30 and released the