The Securities and Exchange Board of India on 31st May 2021 has notified the format for compliance report on corporate governance and has directed the listed entities to make disclosure about loans and guarantees provided by them to promoter or any other entity controlled by them on a half-yearly basis.
As per the provisions of Regulation 27(2) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations), a listed entity is required to submit a quarterly compliance report on corporate governance in the format specified by the Board from time to time to recognized Stock Exchange(s).
Further in order to bring about transparency and to strengthen the disclosures around loans/ guarantees/comfort letters/ security provided by the listed entity, directly or indirectly to promoter/ promoter group entities or any other entity controlled by them, it has been decided to mandate such disclosures on a half yearly basis, in the Compliance Report on Corporate Governance.
Under the new format, any loan or any other form of debt advanced by the listed entity directly or indirectly to the promoter or any other entity controlled by them need to be disclosed, along with aggregate amount advanced during six months and balance outstanding at the end of six months.
