In order to address the gaps in availability of information, the board of markets regulator SEBI on Tuesday decided that listed entities will have to make disclosures about initiation of forensic audit.
To boost repo trading in corporate bonds, the board also approved the proposal to facilitate setting up of a limited purpose repo clearing corporation.
Information to bourses
The listed entities will make disclosures about the fact of initiation of forensic audit along with the name of entity initiating such audit and reasons for the same, if available, to stock exchanges, SEBI said in a statement after the board meeting.
Further, the companies will be required to disclose the final forensic audit report, other than for forensic audit initiated by regulatory or enforcement agencies, on receipt by the listed entity, along with comments of the management, if any.
The disclosure needs to be made without any application of materiality, SEBI said.