India Tightens Rules on Loan Default Disclosure for Public Firms

India’s publicly listed firms must disclose any failure to repay loans within 24 hours in cases where 30 days have passed since the default, its securities regulator said on Wednesday, tightening rules at a time when bond defaults have soared, Reuters reported. The decision was aimed at addressing any gaps in the availability of information to investors surrounding corporate defaults, the Securities and Exchange Board of India (SEBI) said in a statement. “The philosophy is that more and more information should be in the public domain that guide investors and other stakeholders,” SEBI Chairman Ajay Tyagi told reporters in Mumbai. The move comes as loan and bond defaults by companies, particularly several housing finance firms, are rising - adding to pressure on India’s banks, which are saddled with a level of bad debt that is one of the world’s highest. Read more