Too much disclosure in initial stages can lead to deal collapse : Sandeep Parekh

Sebi has approved the regulatory framework on ESG disclosures, ratings and investing, which could potentially lead to an overlord of disclosures by India Inc. However, Sandeep Parekh, Managing Partner, Finsec Law Advisors, believes that the applicability of what Sebi wants could be problematic as the on-going negotiations regarding acquisitions cannot be made known publicly as it would cause the target company’s price to go up and the deal would fall. The extent of what is mainstream media and what is a rumor and the second-order effects need to be considered.