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CS Professional · IFSCA - Regulations, Listing and Compliances · Listing and Issuance of Securities

Zephyr Renewables Ltd, an Indian-promoted company, has listed its equity shares on an international exchange in GIFT IFSC under the IFSCA (Listing) framework. Its board meets to approve quarterly financial results. Which statement best reflects the listed entity's continuing disclosure duty?

A listed entity must promptly disclose price-sensitive and material information to its recognised IFSC exchange, as the listing rules require. It cannot wait for the annual report, a general meeting or a request from Indian exchanges, because continuous disclosure keeps the market informed.

  1. AIt must promptly disclose price-sensitive information to the recognised stock exchange, as the exchange's rules require, and not wait for the next periodic filingCorrect
  2. BIt need disclose material events only once a year with the annual report
  3. CIt need disclose only if the Indian stock exchanges ask for it
  4. DIt may withhold price-sensitive information until the shareholders approve it in a general meeting

Explanation

A listed entity must make timely disclosure of material and price-sensitive developments to the exchange where it is listed so the market is informed on a continuing basis. Waiting for annual reporting or shareholder approval defeats this purpose, and the duty runs to the IFSC exchange, not to Indian exchanges.

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