SEBI has issued circular no. CIR/CFD/CMD1/ 79 /2019 dated 17th
July 2019 under Regulation 101 of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 to All banks which have listed specified
securities on Recognized Stock Exchanges
Applicability: With immediate effect.
Subject:
Modification
of circular dated July 18, 2017, on ‘Disclosure of divergence in the asset
classification and provisioning by banks’
1. Vide
Circular No. SEBI/CIR/CFD/CMD/80/2017 dated July 18, 2017, it was specified
that banks which have listed specified securities shall disclose to the stock
exchanges, divergences in the asset classification and provisioning wherever
the additional provisioning requirements assessed by RBI/ the additional Gross
NPAs identified by RBI exceeded a certain threshold.
2. It is
noted that RBI has now modified the disclosure requirements varying the aforesaid
thresholds, vide its Notification No. RBI/2018-19/157; DBR.BP.BC.No.32/21.04.018/2018-19
dated April 1, 2019.
3. In line
with the revised RBI requirements, all banks which have listed specified
securities shall disclose to the stock exchanges divergences in the asset
classification and provisioning, if either or both of the following conditions
are satisfied:
a. the additional provisioning
for NPAs assessed by RBI exceeds 10% of
the reported profit before provisions and contingencies for the reference
period, and
b. the additional Gross NPAs
identified by RBI exceed 15 % of the published incremental Gross NPAs for the
reference period.
4. The
Circular No. SEBI/CIR/CFD/CMD/80/2017 dated July 18, 2017, shall stand modified
to the extent as specified above.
Source/Link:
https://www.bseindia.com/downloads/whtsnew/file/CIR%2019%20-%2019_07_2019.pdf
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