Securities and Exchange Board of India

31.10.2019

Capital Market

Disclosure of divergence in the asset classification and provisioning by banks

MANU/SDIP/0007/2019

1. Under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('SEBI LODR Regulations') a listed entity shall disclose to stock exchange(s) all events or information, which are material, as soon as reasonably possible and not later than twenty four hours from the occurrence of event or information.

2. Further, SEBI (Prohibition of Insider Trading) Regulations, 2015 ('SEBI PIT Regulations'), mandates prompt disclosure of unpublished price sensitive information that would impact price discovery no sooner than credible and concrete information comes into being.

3. RBI vide Notification No. RBI/2016-17/283; DBR.BP.BC.No. 63/21.04.018/2016-17 dated April 18, 2017 and amended Notification No. RBI/2018-19/157; DBR.BP.BC.No.32/21.04.018/2018-19 dated April 1, 2019 mandated banks to disclose certain cases of divergence in the asset classification and provisioning in the Notes to Accounts in the ensuing Annual Financial Statements published immediately following communication of such divergence by RBI to the bank.

4. Accordingly, SEBI vide its Circular No. CIR/CFD/CMD/80/2017 dated July 18, 2017 and amended Circular no. CIR/CFD/CMD1/79/2019 dated July 17, 2019 also specified the said disclosure requirements to all banks, which have listed specified securities.

5. These disclosures in respect of divergence and provisioning are in the nature of material events / information and hence, necessitate immediate disclosure. Further, this information is also price sensitive, requiring prompt disclosure.

6. This circular shall come into force with immediate effect.

7. The circular is issued under Regulation 30 and 101 of SEBI LODR Regulations.

Tags : Disclosure Divergence Asset classification

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