Therefore, the clause has highlighted a number of separate cases in which they are treated as price-sensitive events, but disclosure is not limited to those events, but may include similar events that may have a significant or significant impact on the company`s performance or activity. The BSE empties its NO. DCS/COMP/11/2014-15 provided a guide to support and direct listed companies, primarily to determine what events should be disclosed and what relevant details with respect to the continuing disclosure obligation under section 36 of the list agreement. The BSE in its circular states as follows: – SEBI empties its Cibular CIR/MRD/DSA/31/2013 number of 30 September 2013 has streamlined the procedure to take action against defective publicly traded companies and has defined sop to deal with infringements. It also recommended that the exchanges establish a monitoring and reporting mechanism on compliance with the provisions of the listing agreement. Listing division of the stock exchange monitors compliance with these clauses and the problems indicate the cause of any violations found in the listing agreement. Introduction: SEBI`s recent injunction against New Delhi Television Ltd (NDTV) for violating Clause 36 of the List Agreement is a concern of all publicly traded companies. SEBI fined Rs.2 crores on NDTV for its non-disclosure on the stock exchanges on a tax claim of Rs.450 crores by the income tax insurance agent. Indeed, Clause 36 is not taken very seriously by some publicly traded companies, because publicly traded companies believe that the reports provided for by this clause have a margin of appreciation. This article analyzes paragraph 36, SEBI`s order, and concludes with the lessons to be learned. Section 36 of the Equity Listing Agreement requires, among other things, any publicly traded company to inform the stock exchanges of any important event that will affect the operation of the company or price-sensitive information. Section 36 contains indicative events that may have a “significant impact” on the performance or operation of the business. Although the clause contained events that could have a significant impact on the operation of the business, there were no clear guidelines or standards regarding the characterization of an event as an “essential event” and the content and details of that disclosure, which led to a kind of inequality of disclosure between listed companies.
In general, companies have provided investors with minimal information about “significant events” affecting the entity, which may not necessarily provide the content of that information and the likely effects of such an event on the entity. Therefore, on 30 September 2014, the Bombay Stock Exchange and the National Stock Exchange issued a guide on the advertising obligation, in accordance with Article 36 of the list agreement, to ensure a certain sense of standardization. This clause also illustrates the following events: Sebi, by its subsequent circular. CIR/CFD/POLICYCELL/13/2013 of November 18, 2013, advised the stock exchanges to strengthen the monitoring mechanism to assess the adequacy or accuracy of returns/information provided by listed companies, as they will help investors decide whether to invest or invest. It ordered that the top 500 companies be monitored for compliance with important clauses such as Clause 35 (share model), Clauseno.36 (publication of price-sensitive events), clause no.41 (unaudited/audited financial results/quarterly results) and clause No.49 (corporate governance) and take action if the data are found to be insufficient/inaccurate.