Legislative Framework Regarding Disclosures Practices

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The essential mechanism of the legal framework which governs the performance and functioning of listed companies in any country is the laws and regulations determining the quantity and quality of corporate disclosures. The core of governance is transparency, disclosure, accountability and integrity.
Disclosures are very necessary for transparency and accountability of listed companies; these are by no means sufficient to ensure either of them.
The main concern for disclosure regulations lies behind the basic question of why disclosures need to be regulated in the first place, and why not instead firms be allowed to voluntarily optimize the quality and quantity of disclosed information in response to market forces.
There are basically two types of disclosures which are; Voluntary disclosure and required disclosure. Voluntary disclosures are those disclosures that are left to the discretion of the company and the level of which is determined by the management or shareholders by balancing at the margin level costs and benefits of disclosures. Disclosures that are required, in contrast, the ones that are mandated by laws and regulations because these are the ones that a company would otherwise not volunteer to provide.

In India, the laws legal framework regarding corporate governance is generally supervised by SEBI guidelines and Companies Act, 2013, however they are not limited to only SEBI guidelines and
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