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The Background
SEBI during its Board Meeting held on March 25, 2021 has decided, inter alia, to amend the Listing Regulations, and introduce a new requirement of uploading the audio/video recordings of all Analyst/Institutional Investor meets on the website of the listed entity and stock exchanges promptly, either before the next trading day or within 24 hours, whichever being earlier and disclosure of the written transcripts of such meetings within 5 working days (“Proposal”).
The Proposal approved at the recent SEBI Board Meeting appears to be much wider in scope as compared to those proposed in the SEBI Report** as listed companies would be now required to upload audio/video recordings and written transcripts of all Analyst/Institutional Investor meets apart from attaching the audio/ video recordings and written transcripts of post earnings conference call/quarterly calls.
The Concern
Whereas we appreciate SEBI’s endeavours towards eliminating information asymmetry across different classes of equity investors, the current Proposal by SEBI makes compliance very impractical and will discourage listed companies from meeting Analysts as well as existing and potential Institutional Investors.
Policy Implication
We believe, the outcome will be detrimental to both the investing community and the listed entities.
Rationale and Recommendations
Our recommendations are summarized below.
We sincerely hope SEBI will consider our representation favorably and come up with guidelines which balances investor interests and compliances.
