SEBI’s April’s FAQs with respect to disclosure of promoter group goes a step further by requiring listed companies to disclose not just immediate relatives of promoters, but even their in-laws and entities in which those in-laws hold stakes, even if the said relatives/ entities do not hold any stake in the listed company.
This stretches the boundaries of disclosure far beyond the individuals who are actually connected with the business, pulling in people who may have no role, interest, or influence over the company whatsoever.
My quote in the Times of India on the above: “Companies will now have to collect and publicly disclose highly personal and sensitive information about unrelated individuals – purely because they are related by marriage. This could include private family businesses of in-laws who may have nothing to do with the listed company. In cases where siblings run their own companies with no cross shareholdings, especially in cases of family settlements, then they would need to disclose each other’s entities.”
