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Wednesday
June 2018
6:53 PM IST
News Headlines
Yo-Yo effect: BCCI for fitness tests before selection        Tick, Tock: Time running out for Messi to deliver        Google announces training programme for journalists        Sensex tanks 261 pts as US-China trade spat escalates        Merkel, Macron search for reforms to halt EU 'disintegration'        S Korea, US confirm suspending military drills        Naveen Patnaik too seeks spl category status for his state        Kumaraswamy refutes reports of Cong-JDS differences on budget        Kejriwal calls off nine day sit-in        J-K govt collapses after BJP pulls out of alliance with PDP        Two-goal Kane gives England 2-1 World Cup opening victory over Tunisia in Volgograd        India's Srija stuns fancied Belgian Anna at women chess meet        FCA India launches Jeep Compass variant at Rs 17.53 lakh        Iraq force accuses US of killing 22 of its fighters in Syria        Merkel gets ultimatum from hardline ally over migrants        ED files fresh charge sheet against Mallya, prepares for fugitive tag        Rahul writes to slain scribe's father, offers condolence        India, China, Pakistan trilateral cooperation can help maintain peace: Beijing's envoy        Open to discussions: Delhi officers after CM's assurance on security        Fresh FIR filed against Nirav Modi for possessing multiple Indian passports        
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Business News
Loan default: Listed cos get a breather from Sebi
 
(New Delhi, Sep 30, 2017): Markets regulator Sebi has put off implementation of its directive "until further notice" that required listed firms to inform exchanges if they default on loan payments to banks and financial institutions.

In a circular, the Securities and Exchange Board of India (Sebi) said it has decided to defer implementation of its earlier directive "until further notice".

Last month, the regulator had directed listed companies to disclose from October 1 any payment defaults to banks and financial institutions within one working day of such a miss.

The move came against the backdrop of the government and the Reserve Bank of India stepping up efforts to tackle the menace of bad loans amounting to over Rs 8 lakh crore.

"Corporates in India are even today primarily reliant on loans from the banking sector. Many banks are presently under considerable stress on account of large loans to the corporate sector turning into stressed assets, non-performing assets (NPAs). Some companies have also been taken up for initiation of insolvency and bankruptcy proceedings," Sebi had said.

In order to address this critical gap in the availability of information to investors, Sebi had asked listed entities to inform exchanges in case it defaulted on payment of interest, instalment obligations on debt securities and loans from banks and financial institutions and external commercial borrowings (ECBs).

"The entities shall make disclosures within one working day from the date of default at the first instance of default in a specified format," Sebi had said.

Currently, Sebi's listing guidelines require specific disclosures on delay or default in payment of interest or principal on debt securities, including listed non-convertible debentures, listed non-convertible redeemable preference shares and foreign currency convertible bonds.

Similar disclosures are not stipulated with regard to loans from banks and financial institutions.

In July, the regulator had asked listed banks to make disclosures if provisioning and NPAs assessed by the RBI exceeded 15 per cent of published financials.

Sebi had said such disclosures should be made along with the annual financial results filed immediately following communication of such divergence by the RBI to the bank.

The move was aimed at helping banks recognise their stressed assets as non-performing more uniformly.(PTI)


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FCA India launches Jeep Compass variant at Rs 17.53 lakh
RBI releases June '18 issue of monthly bulletin
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NITI welcomes $16 bn Walmart-Flipkart deal
Bajaj Finserv offers repayment flexibility on home loan
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KERALA NEWS
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INTERNATIONAL NEWS
Merkel, Macron search for reforms to halt EU 'disintegration'
 Meseberg (Germany), Jun 19 (AFP) German Chancellor Angela Merkel hosted French President Emmanuel Ma
S Korea, US confirm suspending military drills
Iraq force accuses US of killing 22 of its fighters in Syria
Merkel gets ultimatum from hardline ally over migrants
NATIONAL NEWS
Naveen Patnaik too seeks spl category status for his state
 Nitish Kumar and his Andhra Pradesh counterpart N Chandrababu Naidu, Naveen Patnaik too has once aga
Kumaraswamy refutes reports of Cong-JDS differences on budget
Kejriwal calls off nine day sit-in
ED files fresh charge sheet against Mallya, prepares for fugitive tag
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