Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.


Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence


Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
Associate PartnerAssociate Partner
LIVE TV DownloadNews18 App
News18 English
News18 » Business
1-min read

Loan Default: Listed Companies Get a Breather From SEBI

Last month, SEBI had directed listed companies to disclose from October 1 any payment defaults to banks and financial institutions within one working day of such a miss.


Updated:September 30, 2017, 1:14 PM IST
The Securities and Exchange Board of India (SEBI) office building. (File photo)

New Delhi: Markets regulator Sebi has put off implementation of its directive "until further notice" that required listed firms to inform exchanges if they default on loan payments to banks and financial institutions.

In a circular, the Securities and Exchange Board of India (Sebi) said it has decided to defer implementation of its earlier directive "until further notice".

Last month, the regulator had directed listed companies to disclose from October 1 any payment defaults to banks and financial institutions within one working day of such a miss.

The move came against the backdrop of the government and the Reserve Bank of India stepping up efforts to tackle the menace of bad loans amounting to over Rs 8 lakh crore.

"Corporates in India are even today primarily reliant on loans from the banking sector. Many banks are presently under considerable stress on account of large loans to the corporate sector turning into stressed assets, non-performing assets (NPAs). Some companies have also been taken up for initiation of insolvency and bankruptcy proceedings," Sebi had said.

In order to address this critical gap in the availability of information to investors, Sebi had asked listed entities to inform exchanges in case it defaulted on payment of interest, instalment obligations on debt securities and loans from banks and financial institutions and external commercial borrowings (ECBs).

"The entities shall make disclosures within one working day from the date of default at the first instance of default in a specified format," Sebi had said.

Currently, Sebi's listing guidelines require specific disclosures on delay or default in payment of interest or principal on debt securities, including listed non-convertible debentures, listed non-convertible redeemable preference shares and foreign currency convertible bonds.

Similar disclosures are not stipulated with regard to loans from banks and financial institutions.

In July, the regulator had asked listed banks to make disclosures if provisioning and NPAs assessed by the RBI exceeded 15 per cent of published financials.

Sebi had said such disclosures should be made along with the annual financial results filed immediately following communication of such divergence by the RBI to the bank.

The move was aimed at helping banks recognise their stressed assets as non-performing more uniformly.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

| Edited by: Huma Tabassum
Read full article
Next Story
Next Story

Also Watch

Most Active
Company Price Change %Gain
Infosys 652.20 1.34
Yes Bank 51.90 0.19
Axis Bank 721.30 1.20
RBL Bank 248.00 -13.57
Indiabulls Hsg 214.55 -1.58
Company Price Change %Gain
Infosys 651.65 1.30
Yes Bank 51.90 0.19
IRCTC 898.15 6.25
Indiabulls Hsg 214.45 -1.72
RBL Bank 247.65 -13.68
Top Gainers
Company Price Change %Gain
HCL Tech 1,096.95 3.05
Bajaj Finserv 8,216.00 2.59
Eicher Motors 20,425.00 2.23
Titan Company 1,360.25 2.32
SBI 275.90 2.00
Company Price Change %Gain
HCL Tech 1,096.15 2.98
SBI 275.85 2.00
Axis Bank 720.85 1.14
Infosys 651.65 1.30
Maruti Suzuki 7,344.25 1.24
Top Losers
Company Price Change %Gain
Adani Ports 400.30 -4.86
Zee Entertain 245.65 -1.92
Grasim 744.60 -1.51
IndusInd Bank 1,323.10 -1.33
Kotak Mahindra 1,611.85 -1.04
Company Price Change %Gain
IndusInd Bank 1,322.70 -1.34
Kotak Mahindra 1,611.90 -1.04
ONGC 142.70 -1.01
HUL 2,108.40 -0.90
M&M 592.60 -0.82

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results