SEBI has, by way of a circular dated July 17, 2019, modified its earlier circular dated July 18, 2017, which prescribed disclosure norms for divergence in asset classification and provisioning by banks. In line with the Reserve Bank of India ('RBI') notification dated April 1, 2019, SEBI has directed banks having specified listed securities to disclose to stock exchanges divergence in their asset classification and provisioning, if either or both of the following conditions are satisfied: (i) additional provisioning for non performing assets ('NPA') assessed by RBI exceeds 10% of the reported profit before provisions and contingencies for the reference period; and (ii) additional gross NPAs identified by RBI exceed 15% of the published incremental gross NPAs for the reference period.
Originally published September 30, 2019.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
