In a major decision, the Securities and Exchange Board of India (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 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).