Sebi may review practice of giving guidance
Market regulator Sebi may review the industry practice of giving revenue guidance and effect changes in a host of other procedures related to dividend payout among others, besides coming out with norms for oil and gas firms to make adequate disclo...
By PTI |
MUMBAI: Market regulator Sebi may review the industry practice of giving revenue guidance and effect changes in a host of other procedures related to dividend payout among others, besides coming out with norms for oil and gas firms to make adequate disclosures.
Speaking at a FICCI meeting here on Thursday, Sebi Chairman M Damodaran said it had become difficult to know "where guidance stops and forward looking statements start". The practice of providing guidance was being reviewed even in the US, he said, but did not say if he intends to put an end to such announcements.
Damodaran said guidance comprised bread and butter of analysts and resulted in building up of Street expectations. Responding to various queries posed by industry captains at the meeting, Damodaran indicated Sebi was contemplating many changes and work was in progress to give effect to them.
He indicated that changes were being contemplated with regard to practice of declaring dividends on a percentage basis, easing the procedure for issue of shares on rights basis and introduction of different classes of shares instead of focussing only on equity shares. The capital market watchdog was also working on norms for oil and gas companies such as the timing of their announcement of new discoveries.
However, the issue would require due deliberation as presently, it was difficult to define what was an oil or gas discovery. "In the US, if a company makes a discovery and does not inform the exchanges, it is considered a delayed disclosure," the Sebi chief pointed out.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
