Deeds of Family Settlement: SEBI’s LODR Disclosure Stand
Why in the news
Before the Bombay High Court, SEBI explained that listed companies must reveal Deeds of Family Settlement (DFS) under LODR rules, yet this does not tie the company to any duty.
Key facts
- Mandatory: DFS and similar family arrangements count as material information, so shareholders must be told.
- Not binding: disclosure under Regulation 30A does not create or enforce private contractual obligations, restrict the company or alter its management or control.
Terms explained
| Term | Meaning |
|---|---|
| DFS | Family agreement over businesses, properties or shares; settles disputes without litigation and divides assets or duties among heirs |
| LODR | SEBI rules requiring listed companies to be transparent, accountable and fair to investors |
- Typical LODR disclosures: financial results, governance reports, shareholding changes, promoter pledges and agreements such as DFS.
Exam angle
- Court: Bombay High Court. Regulation cited: 30A of LODR.