Sebi to enhance reporting of group-level transactions

Mumbai: The Securities and Exchange Board of India is planning to enhance the reporting of group-level transactions by conglomerates. The regulator said details on cross holdings and material financial transactions within a conglomerate are among matters it is examining for disclosures on an annual basis.

"While listed entities are subject to comprehensive disclosure requirements, the same levels of disclosure requirements are not applicable to unlisted companies," Sebi said in its annual report. "Therefore, there is a need to identify, monitor and manage the risks introduced into the securities market ecosystem by unlisted companies in a conglomerate with a complex set of listed and unlisted associates."

Separately, the regulator said it is reviewing the eligibility criteria for introduction and continuation of stocks in the derivatives segment.

Derivatives contracts on stocks can be traded on stock exchanges only if the underlying stocks satisfy certain objective criteria.

The last review of the eligibility criteria was done in 2018.