You are using an older browser version. Please use a supported version for the best MSN experience.

Regulators looking to resolve twin balance sheet issue: Sebi chief Ajay Tyagi

LiveMint logoLiveMint 06-09-2017 Jayshree P. Upadhyay

Mumbai: Capital market regulator Securities and Exchange Board of India (Sebi), the government and the Reserve Bank of India are working on resolving the twin balance sheet issue, said Sebi chairman Ajay Tyagi at the capital markets summit organised by FICCI.

This problem is a mix of distressed and over-leveraged companies and the increasing non-performing assets (NPAs) in public sector bank balance sheets. While disclosure of loans and debt default may look routine, it will bring discipline among borrowers.

“We are looking at the sanctity of the financial statement, auditors need to take their role seriously,” the Sebi chairman said.

Regulations will be rationalised for ease of doing business, he said. “We have formed a working group to simplify language and rationalise regulations,” said Tyagi.

The first regulation being looked at is the listing obligation and disclosure requirement, and a draft would be released soon for public comments. Disclosures will be rationalised, as materiality of disclosure is important, and not burden market with onerous ones, he added.

More From LiveMint

image beaconimage beaconimage beacon