The new position by sebi, Conveyed as Minutes of the Order, Before The Bombay High Court, offers Much-Needed Clarity to Corporate India | Photo Credit: Abeer Khan
In a major relieve to listed companies, capital markets regulator Sebi Has Clarified that the Mandator Disclosure of Family Settlement Deeds and Agreements Between Promoters will not bind the listed entity or create any liabilites on it.
The development is the outcome of written by Several Entities LED by Atul Kirloskar and RahulSkar, which has challenged the constitutional validity of regulation 30 (a) read with Claus of Part A of Schedule III of the Lodr Regulations.
The trigger for the challenge was the requirement to disclose a 2009 Family Settlement Arrangement Executed Among Kirloskar family members in their individual capacity.
Following the hearing, a spokesperson on behalf of the kirloskar petitioner entities (LED by Atul Kirloskar and Rahul Kirloskar) Said “For the Past Several Years, We have CONSISTENED AND AND Disclosure of Third Party Agreements by listed entities under the sebi regulations, cannot bind listed entities or meaning that that the listed entity admits to such agrement being binding Its management or control on the listed entity ”.
The new position by sebi, conveyed as minutes of the order, before the bombay high court, offers Much-Needed Clarity to Corporate India on an ISUE That Had Rad Rad Rad Rad Rad Rad Rad Rad Rad Rad Companies.
SEBI COUNSEL BIRENDRA SARAF, Who is also Advocate General, Said in the court filing: “… on Instructions from the Respondent (Sebi) Agreements, the mere disclosure of any agrement by a listed entity, shall not, by itself meaning that the company admits such as such as such as as binding on itself or as having an impact on Imposing any restriction or creating any liability upon its itself ”. A copy of the court filing was reviewed by businessline.
The bombay high court has no affirmed this stance pursuant to a Clarification provided by sebi before the bombay high court in line with the above, in the write petitions filed by the listed English Regulations.
The move ensures that listed entities across sector can continue to make disclosures under regulation 30a without For sharehlders, the outcome still safeguards the right to be informed about material agreements that unrelaid indirectly affected company operations.
It added that the listed entities may include a disclaimer as a part of their disclosure. The Final Order from the Bombay High Court is Awaited on this.
Published on September 23, 2025