Key Points
Kirloskar Brothers is the first company to disclose its promoters' entire 'deed for family settlement' (DFS)- an agreement between the family members regarding the distribution of assets and properties - as per the Securities and Exchange Board of India's new disclosure requirements...
Last month, Sebi made it mandatory for promoters of all listed companies to disclose to the stock exchanges all their active family settlement agreements or arrangements that have a bearing or influence on management control of the company...
Lawyers said the disclosure requirements are aimed at improving transparency mainly in family-run businesses as various deals involving promoters could have a bearing on the listed entities...
According to the rules, shareholders, promoters, promoter group entities, and key managerial personnel of listed entities who are parties to the agreements that directly or indirectly could impact the management or control of the listed entity must be disclosed to the stock exchanges...
The new disclosure requirements have also met with some criticism as some market participants and lawyers believe the rules require promoters to disclose those agreements too that may not have a bearing on the listed entities..
