Photo: Aniruddha Chowdhury/MintNew Delhi: Seeking to join forces with other agencies to check financial frauds, regulator Sebi plans to make it mandatory for listed companies to make urgent disclosure about all major loan defaults. Concerned over an alleged loan fraud of over Rs12,000 crore at state-run Punjab National Bank remaining undetected for years, the capital markets watchdog is revisiting its “on-hold” proposal to mandate listed firms to disclose all ‘substantial’ loan defaults within a day. Besides, the Sebi board is also likely to discuss the Kotak panel report on corporate governance. Once implemented, the move would help investors take an informed decision at the earliest in cases of loan defaults by listed companies and at the banks. The fresh push by Sebi follows detection of an alleged loan fraud of over Rs12,000 crore fraud at state-run PNB.

Source: Mint March 04, 2018 09:22 UTC