SEBI Tightens Disclosure Norms Of Banks Listed On The Stock Exchange

SEBI (Securities and Exchange Board of India) has revised its norms on the disclosure requirements of banks listed on the Indian stock exchanges regarding the divergence in provisioning of assets.

The changes made in the disclosure norms are "in line with the revised RBI requirements," the markets regulator said in a circular dated 17 July 2019.

The circular said that listed banks will have to disclose to the stock exchanges any divergences in the asset classification and provisioning if "the additional provisioning for NPAs assessed by RBI exceeds 10 percent of the reported profit before provisions and contingencies for the reference period."

The earlier threshold for reporting additional provisioning for non-performing assets (NPAs) was 15 percent.

SEBI also made the disclosure mandatory in case "the additional gross NPAs identified by RBI exceed 15 percent of the published incremental gross NPAs for the reference period."

In April, the Reserve Bank of India (RBI), in a notification, had asked banks to disclose bad loan divergences in their financial statements if the additional provisioning exceeds 10 percent of profit before provision and contingencies.