First, board decisions regarding dividends, cash bonuses, repurchases, financing, issuing bonus shares, reissue of cancelled shares, capital changes, financial results and voluntary delisting are considered «essential.» The listed company must communicate this decision within 30 minutes of the close of the exchange`s board meeting. Non-compliance may result in fines, suspensions of negotiations, freezing of actions of organizers or promoters of projects or other measures according to SEBI. Under the old clause, there was no such requirement; and listed companies were only tasked with immediately disclosing the relevant information. This allowed companies to provide information within a reasonable time. Companies must ensure that the compliance officer establishes the disclosure statement in prescribed formats3 and puts it online on the stock markets within 30 minutes, in accordance with the 2015 regulations. This short period of time can be unrealistic and can cause technical problems such as connection failure, insufficient detail, etc. if the prescribed formats are too complex. The main reason for the introduction of the listing regulation was the rationalization of all rules applicable to all securities, making it more convenient for companies to follow a set of rules rather than follow two regulations and avoid confusion resulting from the overlapping of two regulations. The introduction of a new regulatory framework has also improved the advertising process with regard to SEBI, as more and more companies are subject to strict control of the regulatory mechanism and, as a result, the process of companies complying with the Securities and Exchange Board of India (SEBI) rules has been improved. With the introduction of listing regulations, contractual obligations have been converted into a legal requirement conferring legal recognition on the regulations. «In cases where the criteria set out in the regulations do not apply, all information deemed essential by the Board of Directors must be disclosed,» he added. Sebi gave a guide rather than telling companies what politics should be.
Second, it is mandatory to disclose fraud and defaults by promoters, major executives or the company itself, as well as any arrests of promoters or management personnel. Fraud is committed when there is an act or omission with the intent to deceive, whether or not there is a profit. In a fraud charge, the accused must prove that the intent was lacking because of a lack of active participation, consent or knowledge of the alleged facts. In general, such an argument requires the establishment of documented evidence of advice procedures, such as meeting documents, minutes, etc. In addition, involvement in fraud and default are disqualifications for prosecution and appointment as key directors or officers, in accordance with the Companies Act. It is therefore extremely important that directors and managers emphasize their reservations and insist that their disagreements be recorded in boards of directors and minutes.