India Inc against mandatory quarterly results

A majority of the top leaders of India Inc are against the Securities and Exchange Board of India's (Sebi) norms that mandate companies declare quarterly results and favour announcing them only twice a year, industry chamber Assocham said today.

According to a statement issued by Assocham, the Eco Pulse survey by the chamber showed as many as 95% of chief executive officers and managing directors were against Sebi's mandatory guidelines for companies to declare their quarterly performance.

The survey brought to light the corporate heads' opinion that Sebi, in consultation with the Company Law Board should make amendments in the current statute so that corporates, both public and private, were required to make their performance public only twice a year.

Most of the respondents were of the view that with limited human resource at their disposal, it was extremely difficult to paint a true picture of their performance to shareholders.

The pressure for declaration of corporates quarterly results was so much that even the top management spent a lot of time in projecting their profits and losses to suit their requirements and maintain their credibility, the survey said.

Almost 80% of the respondents felt public and private sector corporates should have got together under one umbrella in opposition of the move for making declaration of quarterly results, when it was made mandatory a couple of years ago, the survey added.