Listed companies will now have to necessarily disclose all price-sensitive information, including monthly sales figures, to bourses first, market regulator Securities and Exchange Board of India (SEBI) said on Thursday.

Material information

“...all the events or material information which will have a bearing on the performance / operations of the company as well as price-sensitive information shall be first disseminated to the bourse as required under Clause 36 of the Listing Agreement,” SEBI said in a circular.

The regulator said it had noticed certain listed companies giving monthly disclosure of their sales / turnover / production figures to their “respective trade bodies” and the same was not disclosed to the bourses.

The information considered to be ‘price-sensitive’ as per the guidelines include, any change in nature of business, disruptions due to natural calamity, commencement of commercial operations, developments arising out of change in regulatory framework, litigation or disputes having a material impact and revision in credit ratings.

Clause 36

SEBI also advised stock exchanges to take into account the requirements of the circular and bring the same to the notice of the listed companies.

As per Clause 36 of the Agreement, listed firms are required to inform the bourses concerned immediately of events such as strikes, lock-outs, closure on account of power cuts and all events which would have a bearing on the performance as well as prices.

This has to be done both at the time of occurrence of the event and subsequently after the cessation of the event.

The announcements are necessary in order to enable the security holders and the public to “appraise the position of the company and to avoid the establishment of a false market in its securities.”

“In addition, the issuer will furnish to the exchange on request such information concerning the issuer as the exchange may reasonably require,” the Listing Agreement said.