ANALYSIS OF CONCEPT OF MATERIALITY

Author : Rishi Batta | Published On : 18 Apr 2024

Additionally, the Indian government has introduced amendments to the Insolvency and Bankruptcy Code, 2016 in subsequent years thus streamlining the process of resolving insolvency issues and enhancing creditor rights. The Government has relaxed foreign investment guidelines which in turn has promoted foreign direct investment.

Additionally, India's burgeoning consumer market driven by the upper middle class, skilled workforce, and a growing appetite for innovation have attracted both domestic and international investors. The sectors experiencing the most substantial investment inflow range from technology and renewable energy to healthcare and infrastructure development.2 As the nation continues to make strides in its economic policy reforms and infrastructural improvements, the rise in investments in India is poised to further bolster its position as a global investment destination.

In furtherance of the above, the Indian government has been proactively revamping its legal framework governing securities by acting through the Securities and Exchange Board of India (“SEBI”), wherein SEBI introduced quantifiable metrics to determine materiality via SEBI (Listing Obligations and Disclosure Requirements) (Second Amendment) Regulations, 2023 (“Amendment Regulation”) which is in addition to the existing qualitative metrics for determining materiality of an event for listed companies as per the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“LODR Regulations”).