Sebi to act against pharma cos in case of non-disclosure of material information

Markets regulator Sebi said it would take action against pharma companies if they are found not sharing information on material events like inspections and reports by the US FDA.

"It is necessary to share material information even now. If the US FDA (Food and Drug Administration) has taken any action against them (pharmaceutical companies) and they are not disclosing it, if that comes before us, we will take action," Ajay Tyagi, Chairman, Sebi, said in Mumbai. He was replying to a specific question pertaining to pharma companies not disclosing actions by drug regulators in foreign markets like the US FDA undertaking inspections of their facilities and passing orders. There have allegedly been instances of such happenings not being properly disclosed to the investors.

Tyagi said such information that constitutes to be "material information" should be shared with the stock exchanges immediately by the respective companies. India is one of the world’s biggest pharma exporters and many of the domestic players in the sector are listed on the exchanges.