SEBI defers norms for loan default disclosure by listed firms

Securities and Exchange Board of India - SEBI said that further discussion is needed on its proposed norms mandating listed companies to make immediate disclosure about their loan defaults. 

The new rules were to come into effect initially from October but were deferred and a revised proposal was presented before the Sebi board. 

Meanwhile, the regulator has also decided to relax entry norms for foreign portfolio investors - FPIs willing to invest in the Indian



markets. 

Addressing a press conference in Mumbai, SEBI Chairman Ajay Tyagi said the regulator may rationalize "fit and proper" criteria for FPIs as well as simplify broad-based requirements for such investors.

Mr. Tyagi further said that the regulator would allow listing of security receipts issued by an asset reconstruction companies on stock exchanges.He said this move will enhance capital inflow into the securitization industry and also help to deal with banks' non-performing assets.