SEBI LODR Review: Listing Rules and Disclosure Norms
Why in the news
SEBI started a wide review of LODR with the goal of easing and streamlining compliance burdens on listed companies.
Key facts
- Framework: SEBI (LODR) Regulations, 2015.
- Applies to every company whose securities are listed on Indian stock exchanges.
- Themes: transparency, accountability and investor protection.
- Special concern for minority shareholders.
| Area | Examples |
|---|---|
| Continuous disclosure | Material events, quarterly, half-yearly and annual results, shareholding patterns, related party deals |
| Corporate governance | Independent directors, audit and nomination committees, code of conduct, risk policies |
| Other duties | Grievance redressal, annual report disclosures, reporting of loan defaults |
Objectives
- Fair and efficient securities markets.
- Timely disclosure of material information.
- Continuous compliance by listed firms.
Penalties
- Monetary fines on the company and officers.
- Suspension or delisting of securities.
- Disciplinary action by SEBI against directors and management.
Exam angle
- Regulator: SEBI; year of regulations: 2015.
- Full form of LODR: Listing Obligations and Disclosure Requirements.
- Worst-case penalty: delisting.