Mumbai, Dec 28 (PTI) Markets regulator Sebi today decided to hold further discussions on its proposed norms mandating listed companies to make immediate disclosure about their loan defaults. Also Read - Axis Bank, Promoter United India Insurance Settle Cases of Alleged Disclosure Lapses with Sebi

The new rules were to come into effect initially from October but deferred at that time and a revised proposal was presented before the Sebi board at a meeting here. The board, however, decided to defer a decision and felt further discussion was required, the Sebi officials said after the meeting. Also Read - Individuals, Corporates Won’t Be Allowed to Use Cryptocurrencies As Govt Plans Own Digital Currency: Report

Earlier, Sebi had put off implementation of its directive “until further notice” that required listed firms to inform exchanges if they default on loan payments to banks and financial institutions, just a day before it was supposed to be implemented on October 1. Also Read - Bitcoin Witnesses 4-fold Spike in Trading After Tesla Announces to Buy Indian Cryptocurrency

Banks had asked for more time for the new rules as the Indian credit market was different from its Western counterparts where such a disclosure is mandatory.

In August, the regulator had directed listed companies to disclose from October 1 any payment defaults to banks and financial institutions within one working day of such a miss.

The move came against the backdrop of the government and the Reserve Bank of India stepping up efforts to tackle the menace of bad loans amounting to over Rs 8 lakh crore.

This is published unedited from the PTI feed.