SEBI recently released a report on recommendations relating to disclosure of analyst meet, investor meets and conference calls that could be included under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The objective of these suggestions is to strengthen disclosure of accurate information for investors or other stakeholders.
Based on feedback from industry, NASSCOM submitted its response to SEBI on the proposed amendments.
We appreciate SEBI’s efforts to strengthen corporate governance practices and disclosure requirements under LODR Regulations. In today’s digitally connected world, it is important to address asymmetry of corporate information among classes of investors. It is also essential to ensure that Unpublished Price Sensitive Information (UPSI) is not selectively available to group of investors. However, it is also important to consider practical aspects of implementation in order to maintain balance between continuous disclosures under law and optimising cost and effort of compliance. This also entails risk of limiting engagement with investors, which could defeat the entire objective of transparency and disclosures.
Additionally, recommendations presently seem to talk about interactions with investors only. Interactions with sell-side analysts should be treated similarly and should be brought within these regulations since they are important constituents in this ecosystem.
Our detailed response to SEBI is attached for your reference.