The Securities and Exchange Board of India on Friday deferred the implementation of its order that requires companies listed on the stock market to inform exchanges if they default on loan payments. The directive was to come into force from October 1.

However, the implementation of this directive has now been put off “until further notice.”

On August 4, the Markets regulator had asked companies to inform exchanges if they do not pay loans, interest, or instalments on securities to banks and other financial institutions. “Corporates in India are even today primarily reliant on loans from the banking sector,” the regulator had said in a statement. “The entities shall make disclosures within one working day from the date of default, at the first instance of default, in a specified format,” the regulator had said.