Auto and cement companies that release their sales and dispatch numbers to respective trade bodies will no longer be able to do so unless they share the data first with the stock exchanges.
The capital market watchdog has taken a stern view on the trend that industry bodies especially those of cement, steel and automobiles release the monthly business growth numbers every month.
?It has been brought to our notice that certain listed companies have been giving monthly disclosure of their sales, turnover, production figures to their respective trade bodies, industry associations and the same is not disclosed to the stock exchanges,? said a circular issued on Thursday.
The Securities and Exchange Board of India (Sebi) has clarified that all information that impact the stock price should first be announced on the stock exchange platform before it is disseminated through various trade bodies.
?It is… reiterated that all the events or material information which will have a bearing on the performance and operations of the company as well as price sensitive information shall be first disseminated to the stock exchanges as required under Clause 36 of the Listing Agreement,? stated the circular.
Market players say sebi?s move could affect the manner in which trade bodies like Society of Indian Automobile Manufacturers (Siam) and Cement Manufacturers’ Association (CMA) function. They, however, add these bodies typically disseminate data only after individual member companies have made available the data through stock exchange announcements and media releases.
