Mumbai, Mar 28 (PTI) Sebi chief Ajay Tyagi today said the decision on proposed norms necessitating listed companies to make urgent disclosures about all major loan defaults lies with the regulator’s board.

The new rules were to come into effect initially from October 1 last year but were deferred after banks had asked for more time as the domestic credit market was different from its Western counterparts where such disclosures are mandatory.

In December last year, Sebi had stated it would hold further discussions on the said proposal, which was expected to be discussed at the regulator’s board meeting today.

“The matter is with the board and the board will take a view,” Tyagi told reporters after the board meeting The proposal may mandate listed companies to disclose to the stock exchanges about their loan defaults to banks and financial institutions, within one working day of missing a repayment.

Once implemented, the move would help investors take an informed decision at the earliest in cases of loan defaults by listed companies.

The proposal gains attention amid the alleged loan fraud of over Rs 13,000 crore at state-run Punjab National Bank (PNB) remaining undetected for years.

The transactions were carried out by diamantaires Nirav Modi and Mehul Choksi by allegedly acquiring fraudulent letters of undertaking (LoU) from PNB’s Brady House branch in Mumbai to secure overseas credit from other Indian lenders.

When asked about the circulation of unpublished price sensitive information of some companies through social media platforms like WhatsApp, Tyagi said that the time period given to four firms against which it has passed orders is not yet over and it is waiting for their reports.

“It has now in fact shifted to the investigation department and we have utilised the services of some of the experts, encryption technology. We have taken from consultancy so it is far from over,” he added.

At present, there are four companies — Tata Motors, Axis Bank, HDFC Bank and Bata India — against whom the regulator has passed orders in the high-profile case of leakage of sensitive financial details prior to formal announcement of quarterly results.

Besides, Tyagi said that Viswanathan’s committee report on PIT (Prohibition of Insider Trading) norms and PFTUP (Prohibition of Fraudulent and Unfair Trade Practices) regulations is expected very soon and then the regulator will strengthen that regulatory framework.

The regulator had set up the committee in August last year.

This is published unedited from the PTI feed.