System driven disclosures for members of promoter group, designated persons

To enhance transparency and promote orderly conduct in the securities market, SEBI has outlined the disclosure requirements for the acquisition, sale, and pledge of securities under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 ("SAST Regulations") and SEBI (Prohibition of Insider Trading) Regulations, 2015 ("PIT Regulations"). With the advancement of systems and technologies adopted by Stock Exchanges, Depositories, and Registrar and Share Transfer Agents (RTAs), system-driven disclosures have become feasible and were introduced in phases. In the first phase, SEBI mandated the disclosure of changes in the shareholding of promoters and promoter groups of listed entities. In the second phase, SEBI introduced system-driven disclosures related to Regulations 29(1) and 29(2) of the SAST Regulations for non-promoters and disclosures under Regulation 7(2) of the PIT Regulations for company directors and employees. Subsequently, system-driven disclosures for members of the promoter group and designated persons were implemented under Regulation 7(2) of the PIT Regulations.

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Development finance institutions have played a constructive role in establishing India's industrial base. However, these institutions seem to have moved away from their developmental role and are getting entangled deeper in management and control of private sector industries. Corporate circles have been pleading for a re-examination of the role and appointment of nominee directors to avoid day-to-day interference in company operations. Furthermore, some argue that financial institutions should keep their funds rolling by disposing of shares with a ready market. The concept of growth or mutual funds has yet to take root in the country, but such funds could prove successful in mobilising and canalising community savings for industrial development.

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