Sebi tightens norms for listed banks on bad loan disclosures
The decision has been take in consultation with the RBI, the Sebi said in a circular.
New Delhi: Markets regulator Sebi on Thursday asked all listed banks to make disclosures about any divergence in provisioning of bad loans beyond specified threshold within 24 hours of receiving a risk assessment report from the Reserve Bank.
The decision has been take in consultation with the Reserve Bank of India (RBI), the Securities and Exchange Board of India (Sebi) said in a circular.
Accordingly, the market regulator has decided that "listed banks shall make disclosures of divergences and provisioning beyond specified threshold, as mentioned in aforesaid RBI notifications, as soon as reasonably possible and not later than 24 hours upon receipt of the Reserve Bank's Final Risk Assessment Report (RAR), rather than waiting to publish them as part of annual financial statements".
This new framework will come into force with immediate effect, it added.