(ET)
The Securities and Exchange Board of India (Sebi) proposal requiring listed companies to disclose a loan default within a day of it happening is unlikely to be implemented, with both the government and the Reserve Bank of India (RBI) not keen on such a measure, said two people close to the development.
Sebi had sought to resurrect the plan by taking the proposal to the regulator’s board meeting on December 28. After the meeting, it said the proposal had been deferred but ET deferred but ET understands that the plan has likely been scrapped because of concerns that the information so disclosed would mean banks needing more capital. “This matter was discussed at length but both the government and the Reserve Bank were not in favour of implementing this proposal,” said a Sebi board member.
