Sebi simplifies rules for filing results with SEs

Simplifying disclosure norms, Securities and Exchange Board of India (Sebi) has directed all stock exchanges to replace the existing clause 41 of the equity listing agreement with a revised clause that will rationalise and modify the process and formats for submission of financial results to the bourses.

According to a release issued on the Sebi website, to enable investors to know the performance of companies as early as possible, the revised clause requires companies to furnish either unaudited or audited quarterly and year-to-date financial results to the exchange within one month from the end of each quarter.

"The revised clause has also simplified provision for explanation in variation between items of unaudited and audited quarterly/ year to date / annual results. The revised clause requires that explanation for variation be furnished in respect of Net Profit or Loss After Tax and for exceptional / extraordinary items. The percentage of variation for the purpose is revised from '20% or more' to '10% or Rs 10 lakh, whichever is higher'," the release said.

Regarding publication of financial results, companies who file stand-alone as well as consolidated results, will have an option to publish stand-alone or consolidated results, subject to the condition that a choice once exercised cannot be changed during the year. "In case the company changes its option in any subsequent financial year, it would be required to furnish comparative figures for the previous financial year in accordance with the option exercised for the current year," the release added.