Integrated Disclosure - Streamlining the Disclosure Norms in the Indian Securities Market

Indian Institute of Management, Ahmedabad Working Paper No. 2005-01-04

12 Pages Posted: 25 Jan 2005

See all articles by Sandeep Parekh

Sandeep Parekh

Finsec Law Advisors; Indian Institute of Management, Ahmedabad

Date Written: January 2005

Abstract

An increasing focus on improved disclosures has been the regulatory thrust of securities regulations since the great crash of 1929. India gave up the merit based system of a controller regulating the issue of securities in favor of the disclosure based regulatory philosophy in 1988. Since then an increasing focus on public disclosure has been a priority with SEBI, the Indian regulator.

However, in an attempt to improve the quality of disclosure, a necessary waste product has developed - that of the quantity of disclosure. Today with new regulations being added by the legislature, SEBI and stock exchanges, we see an excessive duplication of disclosure particularly of listed companies.

There are several areas where net disclosure of information can be maintained even while reducing the quantity of information brought out. This paper examines some areas which require reduction of information flow because the information is already out in the public domain. The paper advocates a transition to a company registration with greater emphasis on continuous disclosures and a relatively easy track for seasoned companies to raise capital without an extensive prospectus centered regulations.

Keywords: Integrated disclosure, India, securities regulation, efficient capital market hypothesis

JEL Classification: F36, G14, G18, G24, G28, G38, K22

Suggested Citation

Parekh, Sandeep, Integrated Disclosure - Streamlining the Disclosure Norms in the Indian Securities Market (January 2005). Indian Institute of Management, Ahmedabad Working Paper No. 2005-01-04. Available at SSRN: https://ssrn.com/abstract=653703 or http://dx.doi.org/10.2139/ssrn.653703

Sandeep Parekh (Contact Author)

Finsec Law Advisors ( email )

709 Raheja Centre, Free Press Journal Road
Nariman Point
Mumbai, Maharashtra 400021
India
91 22 43470750 (Phone)

HOME PAGE: http://www.finseclaw.com

Indian Institute of Management, Ahmedabad ( email )

Vastrapur
Ahmedabad, Gujarat 380 015
India
91 79 66324000 (Phone)

HOME PAGE: http://www.iimahd.ernet.in

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