Timely Disclosure Policy
Updated on March 14, 2023
Timely disclosure Policy refers to laws, rules and regulatory framework which is established for providing investors and the general public with important, relevant and material information related to listed companies, financial institutions and other such entities. This is for making them aware to be able to make informed decisions. Financial markets and instruments are extremely important for any economy and their security and stability are of primary concern to the regulators and governments.
Why is Timely Disclosure Policy important?
Timely Disclosure should reveal both positive and negative news, data, and operational details that impact an entity’s business. In addition to disclosure in the law, the objective is that all parties should have equal access to the same set of facts in the interest of fairness. It helps in maintaining the public’s confidence in the transparency and stability of the market. Timely Disclosure policy should be disseminated to investors and should be publicly available, through media or directly. It covers all aspects with respect to material and non material information and covers areas like – Rights and Responsibilities, disclosure of Financial Information, Legal disclosures, Conflict of Interest disclosures and reporting disclosures.