Having a website with up-to-date information at any given point of time will become mandatory for all the listed companies with effect from tomorrow - a move aimed at providing investors with easy access to information.
A notification by market regulator Sebi, which makes it mandatory for listed companies to have a functional website with latest details of various investor-sensitive information about them, will come into effect from April 1.
The websites would require to have updated information about the company’s basic business and financial details, shareholding pattern, corporate governance, contact details, as also information about any agreements with media companies.
As per the Sebi guideline, the companies not adhering to the requirement of having a ‘up and running’ website will face the risk of getting de-listed from the stock exchange where their shares are traded.
Changes to this effect have been brought forward by Sebi by amending Equity Listing Agreement, which a company needs to enter into with a stock exchange before getting listed.
Sebi said that these amendments to the listing agreement were aimed to “ensure/enhance public dissemination of all basic information about the listed entity.”
As per the amendment, proposed to come into effect from April 1, 2011, it would be mandatory for any listed company to “maintain a functional website.”
On its website, the company would need to provide “details of its business, financial information, shareholding pattern, compliance with corporate governance, contact information of designated officials responsible for assisting and handling investor grievances, details of agreements entered into with the media companies and/or their associates, etc.
Besides, companies would have to “ensure that contents of the said website are updated at any given point of time.”
With effect from January 1, 2011, Sebi has already made it mandatory for the listed companies to make relevant disclosures about their agreements with media companies.
Besides their websites, the listed companies are also required to notify the stock exchanges with details of agreements entered into by corporates with media companies
Disclosures are required regarding shareholding of media companies, details of nominee of the media companies on the board of a listed company and any management control or potential conflict of interest arising out of such agreements.
Besides, the companies are also required to disclose “any other treaties/contracts/agreements/MoUs or similar instruments entered into by the issuer company with media companies and/or their associates for the purpose of advertising, publicity, etc.”
