The Securities and Exchange Board of India (SEBI), the regulatory authority overseeing the Indian securities market, introduced the SEBI (Listing Obligations and Disclosure Requirements) (Second Amendment) Regulations, 2023 dated 14th June, 2023. This amendment thrust to enhance transparency, governance, and accountability in the listed companies by refining the disclosure norms outlined in Schedule III Part A Para A and Regulation 46 of the SEBI (LODR) Regulations.
One of the most important change in the timeline for disclosure of Analysts/Institutional Investors Meet are mentioned under the head of Regulation 30 read with Schedule III Part A Para A to be intimated to the Stock Exchange and under the head of Regulation 46 to be disseminated on the Company’s Website.
Now, the question arising is whether is it mandatory for a Company to conduct a meeting with the Analysts/Institutional Investors.
The answer to this question is No, it is not mandatory to conduct such meetings. However, it helps the listed entity to share valuable information and to maintain transparency and accountability with security analyst, investors and strategist.
Analysts/ Institutional Investors Meet is an annual event hosted by public companies.
Analysts/ Institutional Investors meetings offer a range of benefits to companies, from strengthening investor relations and communication to attracting capital and improving market perception. These meetings contribute to the company’s overall growth and success by fostering a positive relationship between the company and its investors.
Let us understand the related compliances with regard to Institutional Investors Meet by way of some examples:
A. Suppose, a Listed Entity has decided to have an Institutional Investors Meet on 26th August, 2023.
As per the recent amendments the Listed Entity shall intimate the Schedule of the meet atleast two days in advance of the meet excluding the date of meeting i.e., 26th August, 2023, two working days (24th & 25th August, 2023) and the date of intimation i.e., 23rd August, 2023. Therefore, the Listed Entity is required intimate the Stock Exchange on 23rd August, 2023 about the meet that is to be held on 26th August, 2023.
After the meet, the Listed Entity is also required to disclosure the following to the Stock Exchange and disseminate on the Website of the Listed Entity:
(i) Presentation made by the Listed Entity for the meet and the audio/video recordings of the meet, before the next trading day or within twenty-four hours from the conclusion of such calls, whichever is earliere., on or before 27th August, 2023. Even though it is a Sunday, being a non-trading day still as it is mention that 24 Hours or next trading whichever is earlier. Therefore, 24 hours will be considered for the above-mentioned purpose.
The information shall be hosted on the website for minimum of 5 years or more if decided by the Listed Entity i.e., on or before 27th August, 2028.
(ii) Transcripts of the meet within five working days of the conclusion of such meete., on or before 01st September, 2023.
The transcripts of the meet shall be preserved permanently as prescribed in Regulation 9 (a).
B. Suppose, a Listed Entity has decided to have an Institutional Investors Meet on 22nd August, 2023.
As per the recent amendments the Listed Entity shall intimate the Schedule of the meet atleast two days in advance of the meet excluding the date of meeting i.e., 22nd August, 2023, two working days (18th & 21st August, 2023) and the date of intimation i.e., 17th August, 2023. Therefore, the Listed Entity is required to intimate the Stock Exchange on 17th August, 2023 about the meet that is to be held on 22nd August, 2023.
After the meet, the Listed Entity is also required to disclosure the following to the Stock Exchange and disseminate on the Website of the Listed Entity:
(i) Presentation made by the Listed Entity for the meet and the audio/video recordings of the meet, before the next trading day or within twenty-four hours from the conclusion of such calls, whichever is earlier i.e., on or before 23rd August, 2023.
(ii) The information shall be hosted on the website for minimum of 5 years or more if decided by the Listed Entity i.e., on or before 23rd August, 2028.
Conclusion:
Considering the above-mentioned provisions and examples we can conclude that the intimation to the Stock Exchange and dissemination on the website of the Listed Entity about the meet shall be in T-3 working days. [Trading days being Monday to Friday excluding National Holidays.]
All other disclosures with respect to the meet shall be disseminate on the website and intimated to the stock exchanges within the prescribe timelines like before the next trading day or within twenty-four hours from the conclusion of such calls, whichever is earlier or within five working days of the conclusion of such meet.
Presentation made by the Listed Entity for the meet and the audio/video recordings of the meet shall be hosted on the website for 5 years and the transcripts of the meet shall be preserved by the Listed Entity permanently.
Therefore, all the information related to the Analysts/Institutional Investors Meet of a Listed Entity are very important and SEBI wants to sought disclosures for Better Transparency and Good Corporate Governance by all Listed Entities.
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very informative..just seems like today I gather new knowledge..