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A Disclosure Statement gives stakeholders a clear picture of important facts, risks, and financial details about a business or transaction. In India, companies must provide these statements under various regulations, including SEBI guidelines for listed companies and the Companies Act of 2013.

These documents protect both businesses and stakeholders by sharing vital information upfront. For example, when issuing securities or during mergers, Indian firms use disclosure statements to reveal potential conflicts of interest, material risks, and financial positions. This transparency helps investors make informed decisions and keeps companies compliant with regulatory requirements.

Use a Disclosure Statement when making significant business changes that affect stakeholders. This includes launching an IPO, issuing new securities, starting merger discussions, or restructuring your company. Indian regulators require these statements for listed companies making material changes to their operations or financial structure.

The timing matters most during major transitions: before closing investment rounds, when changing ownership structures, or updating shareholders about significant risks. Companies dealing with SEBI compliance needs, preparing rights issues, or handling preferential allotments must file disclosure statements to maintain transparency and protect all parties involved.

• Initial Public Offering (IPO) Disclosures: Detail company financials, risks, and business operations for potential investors.
• Annual Corporate Disclosures: Regular statements filed by listed companies covering financial performance, material events, and governance changes.
• Rights Issue Disclosures: Inform existing shareholders about new share offerings, including terms and impact on ownership.
• Merger and Acquisition Disclosures: Outline transaction details, valuations, and potential impacts on stakeholders.
• Material Event Disclosures: Report significant changes like management restructuring, major contracts, or regulatory actions.

• Company Directors and Officers: Responsible for preparing and signing Disclosure Statements, ensuring accuracy of information shared with stakeholders.
• Legal Teams: Draft and review statements to ensure compliance with SEBI guidelines and Companies Act requirements.
• Financial Advisors: Help compile financial data and risk assessments for comprehensive disclosures.
• Investors and Shareholders: Rely on these statements to make informed investment decisions.
• Regulatory Bodies: Monitor and enforce disclosure requirements, including SEBI and the Ministry of Corporate Affairs.

• Company Information: Gather detailed business profile, ownership structure, and financial statements from past three years.
• Risk Assessment: Document all material business risks, market challenges, and potential conflicts of interest.
• Financial Data: Compile current valuations, debt obligations, and significant asset details.
• Regulatory Compliance: Check latest SEBI guidelines and Companies Act requirements for your specific disclosure type.
• Board Approval: Secure necessary internal approvals and director signatures before submission.
• Document Review: Use our platform to generate a legally-sound statement that includes all mandatory elements.

• Company Details: Full legal name, registration number, registered office address, and director information.
• Financial Information: Current financial position, debt obligations, and material changes in financial status.
• Risk Factors: Clear description of business risks, market challenges, and potential adverse impacts.
• Material Information: Significant contracts, pending litigation, regulatory compliance status.
• Declaration Section: Statement confirming information accuracy, signed by authorized directors.
• Compliance Statement: Confirmation of adherence to relevant SEBI regulations and Companies Act provisions.
• Supporting Documents: Referenced financial statements, certificates, and regulatory approvals.

A Disclosure Statement differs significantly from a Non-Disclosure Agreement (NDA), though both deal with information sharing. While a Disclosure Statement proactively reveals important information to stakeholders, an NDA restricts information sharing and creates confidentiality obligations between parties.

• Purpose and Intent: Disclosure Statements inform stakeholders about material facts and risks, while NDAs protect confidential information from unauthorized sharing.
• Legal Obligation: Disclosure Statements are often mandatory under SEBI regulations and Companies Act requirements; NDAs are voluntary contracts between parties.
• Direction of Information Flow: Disclosure Statements push information outward to multiple stakeholders; NDAs control information flow between specific parties.
• Enforcement Mechanism: Disclosure Statements face regulatory enforcement and potential penalties; NDAs rely on contractual remedies between parties.