Sebi official Rajesh Dangeti highlighted concerns about the quality of disclosures made by companies to stock exchanges, suggesting they often lack clarity and substance. He emphasized the need for frequent, fair, and easily understandable information for investors. Dangeti also questioned whether the current quarterly disclosure frequency for certain information could be reduced, given advancements in technology and depository mechanisms.

Lot of disclosures to stock exchanges 'probably leaves a lot for imagination': Sebi official

Sebi Official Questions Disclosure Practices of Listed Companies

A Securities and Exchange Board of India (Sebi) official has raised concerns about the clarity and frequency of disclosures made by listed companies. Rajesh Dangeti, Chief General Manager of Sebi's Corporation Finance Department, suggested that current disclosures often "leave a lot for imagination."

Speaking at a Ficci conference titled "Agile Governance: Fostering Transparency & Building Trust," Dangeti emphasized the importance of clear, concise, and easily understandable information for investors. He highlighted the need for companies to ensure disclosures are not only frequent but also meet the spirit, as well as the letter, of the regulations.

Key concerns raised by Dangeti include:

Lack of Clarity: Many disclosures, while technically compliant, lack sufficient detail and clarity for the average investor.
Frequency of Disclosures: Dangeti questioned whether the current quarterly reporting requirement for certain disclosures, such as shareholding patterns and financials, is still necessary given advancements in technology and the depository mechanism.
Need for Improved Transparency: The overall aim should be to ensure information is provided frequently, fairly, and in a manner easily understood by all investors.

Dangeti directly addressed the corporate world, posing the question: "Do you think the time has come that the frequency [of certain disclosures] can be reduced? You should look at it."

His comments underscore Sebi's ongoing efforts to enhance transparency and protect the interests of investors, particularly minority shareholders, in the Indian stock market.