Transparency at the cost of law

Our Founder and MD, Mr. Shriram Subramanian, recently wrote an article in Financial Express (India) on SEBI’s Regulation 30A of the LODR, which is currently under judicial scrutiny in the Bombay High Court.

Regulation 30A requires disclosure of private agreements among promoters, shareholders, employees, or KMPs that may impact a company’s management or control, even when the company is not a signatory or has not ratified them. By treating such disclosed agreements as binding, the regulation risks conflicting with established principles of contract law and corporate governance.

He highlights that this framework may dilute the principle of privity of contract, reduce the authority of boards, and create uncertainty by applying retrospectively to old agreements. While transparency is important for investor protection, disclosure need not automatically translate into corporate liability. The way forward, he noted, is to refine the regulation by clearly separating disclosure from enforcement, thereby promoting transparency while preserving legal certainty.

Read the full article: https://www.financialexpress.com/opinion/transparency-at-the-cost-of-law/3983453/