New Delhi, Aug 5 (KNN) The Securities and Exchange Board of India (SEBI) has made it compulsory for the listed companies to keep stock exchanges in loop in case they default on interest or loan repayments to banks and financial institutions.

They have to disclose the details within one working day of the default, the market watchdog has said.

Companies have to make specific disclosures in instances such as delays and defaults in the payment of interest and principal on debt securities, listed non-convertible debentures, redeemable preference shares and foreign currency convertible bonds.

“Similar disclosures are presently not stipulated with respect to loans from banks and financial institutions,” Sebi said.

 “In order to address this critical gap in the availability of information to investors, listed entities shall comply with the requirements,” Sebi said.