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SEBI asks pharma companies to share price-sensitive details: Report

In 2017 the market regulator cracked a whip against pharma major companies for not disclosing the status of USFDA approvals.

September 09, 2022 12:29 IST | India Infoline News Service
The Securities and Exchange Board of India (SEBI) has discovered some details from several pharma major companies on public disclosures that are stock price sensitive. The enquiries are part of the capital market regulator's checks on these companies' disclosure practices and whether the pharma entities have promptly disseminated such information.

According to the report published on "The Economic Times" the Capital market regulator has asked these companies the details of disclosures made regarding new drug launches, pending patents, sourcing of input materials and new collaborations entered and other details, said the sources having direct knowledge of this matter.
The development comes as pharma stocks have seen sharp rise of price in recent years and SEBI wants to ascertain if all the price-sensitive information has been disclosed to the investors in a fair and time-bound manner. In some of the recent cases, Sebi learnt to have found delays in disclosures while in a few other cases, no disclosures were made at all.
Notably, in 2017 the market regulator cracked a whip against pharma major companies for not disclosing the status of USFDA approvals. Since then, the disclosure standards of the industry have seen a strong improvement, commented legal experts.

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