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Key-Interpretations-under-Industry-Standards-Note-on-Regulation-30-of-the-LODR-Regulations
Key Interpretations under Industry Standards Note on Regulation 30 of the LODR Regulations
The Industry Standards Note on Regulation 30 of the LODR Regulations provides detailed interpretations for various terms and their applicability. The following table presents a clear understanding of the major interpretations:
1. Expected Impact in Terms of Value
| Occurrence of Event/Trigger Point | Interpretation |
|---|---|
| Within 60 days of a Quarter | Expected impact in the four ensuing quarters (including the quarter in which the event occurs) |
| Not within 60 days of a Quarter | Expected impact in the four ensuing quarters |
2. PPR Test (Probable, Possible, Remote)
| Outcome of the Event (Above Materiality Threshold) | Interpretation |
| P (Probable) or P (Possible) | Disclosure may be provided |
| R (Remote) | Disclosure may not be required |
3. Disclosure on Indemnity and Insurance Claims
| Threshold | Interpretation |
| Nil | May disclose details of indemnity and insurance claims which could mitigate the expected impact, if any |
4. Last Audited Consolidated Financial Statements
| Threshold | Interpretation |
| Nil | Annual audited consolidated financial statements |
5. Significant Market Reaction
| Threshold | Interpretation |
| Nil | To be assessed against scrip price |
6. Litigations or Disputes with Similar Question of Law or Factual Matrix
| Likelihood | Interpretation |
| Similar Outcome Likely | Cumulative effect should be considered for disclosure |
7. Receipt of Show Cause Notice
| Source | Interpretation |
| Generally | Does not trigger disclosure |
| Regulatory, Statutory, Enforcement Authority | Disclosure as per Para A(20) of Part A of Schedule III |
8. Timeline for Disclosure
| Scenario | Justification for Delay |
| Force Majeure | Delay may be justified |
| Prima Facie Assessment | Reasonable time for completion may be considered |
| Subsidiary, Director, KMP, Senior Management, Promoter Related Events | Delay may be explained during disclosure |
9. Resignation of Director
| Trigger Point | Timeline for Disclosure |
| Date of Resignation comes to effect | Within 24 hours |
10. Investor Meet
| Scenario | Timeline |
| Urgent Matters | Requirement of two working days’ notice may be dispensed with |
11. Voting Result
| Regulation Reference | Timeline |
| Regulation 44 | Within 2 working days |
12. Proceedings of AGM
| Event | Timeline |
| AGM Proceedings | Within 12 hours |
13. Threshold Principles (Reddendo Singula Singulis)
| Event | Threshold |
| Impact on Turnover/Profit | 2% of Turnover or 5% of Average Absolute PAT |
| Impact on Capital Cost | 2% of Net Worth |
14. Enforcement Authority
| Authority | Interpretation |
| Nil | Enforcement Directorate and Central Bureau of Investigation are considered enforcement authorities |
This structured interpretation will help companies ensure compliance with Regulation 30 of the LODR Regulations by providing clarity on when disclosures are necessary and how they should be approached.
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Swarna Lakshami