Since last 12 months, due to amendment in SEBI disclosure of information for listed companies, we find signficant increase in intimations to stock exchange about regulatory action. The SEBI guideline made such disclosure necessary, which were not previously covereed as material event. Find enclosed SEBI dislosure amendment paper.
Refer to page 23 of this PDF file
20) Action(s) taken or orders passed by any regulatory, statutory, enforcement authority or judicial body against the listed entity or its directors, key managerial personnel, senior management, promoter or subsidiary, in relation to the listed entity, in respect of the following:
(a) suspension;
(b) imposition of fine or penalty;
(c) settlement of proceedings;
(d) debarment;
(e) disqualification;
(f) closure of operations;
(g) sanctions imposed;
(h) warning or caution; or
(i) any other similar action(s) by whatever name called;
along with the following details pertaining to the actions(s) initiated, taken ororders passed:
i.name of the authority;
ii. nature and details of the action(s) taken, initiated or order(s) passed;
iii.date of receipt of direction or order, including any ad-interim or interim orders, or any other communication from the authority;
iv.details of the violation(s)/contravention(s) committed or alleged to be committed;
v.impact on financial, operation or other activities of the listed entity, quantifiable in monetary terms to the extent possible.
As a result, all kind of regulatory notices now being reported since June 2023 to Stock exchange which was previously optional and disclosed based on material impact assessment of management.
As a result. across all companies one see major increased in announcement about receipt of notice from income tax, GST, excise, custom and other regulatory bodies. One has to read notice/order/disclosure and form opinion whether such notices are covered under business as usual or are for material breach/fraud which can be adversely affect future of the company.
This is my understanding and may be incorrect.
Disclosure: Akzo Noble among my Top 15 core equity holding in my portfiio. My view may be biased due to my holding. I may increase/decrease/exit from the company without informing forum. I am not suggesting any investment action in the company. I am not a SEBI registered advisor.
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