Quantitative threshold as proposed in Sebi consultation paper may lead to disclosure overload, warns expert - MMJC

The Securities and Exchange Board of India (SEBI) has approved the regulatory framework on ESG (Environmental, Social and Governance) disclosures, ratings and investing, the fineprints of the amendments are yet to be released.

“The capital market regulator could either introduce ‘quantitative thresholds’ as they believe would be material or allow individual listed Indian Inc to individually decide their own ‘quantitative thresholds’ for disclosure purposes.”

“If SEBI introduces the same thresholds as was originally proposed in the Consultation Paper of November 2022, it would change the fundamentals of disclosure of material information and may lead to overload of disclosure for India”

The retail investors may have to spend significant time in going through these disclosures and understand its long term implications before making their investment decisions.

Makarand Joshi – Partner of MMJC – shared his views on SEBI’s board consent to the amendments to SEBI (LODR) Regulations, 2015 and SEBI (Mutual Funds) Regulations, 1996 to facilitate a balanced approach to ESG.

Read more at

https://economictimes.indiatimes.com/markets/stocks/news/quantitative-threshold-as-proposed-in-sebi-consultation-paper-may-lead-to-disclosure-overload-warns-expert/articleshow/99113425.cms