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Listed firms must share forensic audit reports with bourses: Sebi

Listed firms must share forensic audit reports with bourses: Sebi

Markets regulator Sebi on Tuesday made it mandatory for all listed entities to disclose to the stock exchanges any forensic audit that a company carries out. The entity is also required to intimate to the exchanges when a forensic audit is initiated, the regulator said after its board meeting earlier in the day.

To make debt funds less risky for investors, Sebi has decided that from now on debenture trustees should carry out an independent audit of the collateral against which the company is issuing the debentures. During the board meeting, Sebi also approved a proposal to facilitate setting up of a limited purpose repo-clearing corporation, which could help deepen the debt market.

Sebi further said that a person informing the regulator or a company about any violations relating to insider trading could do so within a period of three years from the date of violation. It also made changes in the rules so that the informant for insider trades should include specific information. These refer to details of securities, trades by the suspect and unpublished price-sensitive data based on which the insider trading is alleged, it said.

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