Market regulator the Securities and Exchange Board of India (Sebi) has amended certain clauses related to equity listing, depository receipts and SME listing agreement, under which firms will henceforth have to submit limited review report of auditors along with unaudited results.
"It is being observed that certain listed entities while submitting their interim financial results, submit unaudited financials first and subsequently submit the limited review report after a lag. It is, hereby, clarified that submission of unaudited results shall be accompanied by the limited review report of the auditors," it said in a circular.
Besides, with regard to disclosure of quarterly financial results, listed entities will now have to disclose figures in respect of immediately preceding quarter as well in addition to the existing requirements.
According to the Sebi, this is intended to give a better comparative picture of the quarterly financial results.
"The changes are part of Sebi effort to improve existing provisions, streamline the system and prevent fraudulent action by brokers," CNI Research Chairman and Managing Director Kishore Oswal said.
Companies will have to submit the last quarter results along with the audited annual results.
The regulator has also amended clauses relating to the mode of supplying annual reports to shareholders.
"...In line with the green initiative of Ministry of Corporate Affairs... It has been decided that instead of supplying complete and full annual reports to all the shareholders, listed entities shall supply soft copies of full annual reports to all those shareholders who have registered their email addresses for the purpose," Sebi said.
Companies will also have to supply hard copy of abridged annual reports to others and hard copies of full annual reports to those shareholders who request for such a copy.
To bring further transparency to the disclosure of voting results by listed entities, Sebi has directed to "disclose their voting results in the prescribed format to the exchanges and also place the same on their websites, within 48 hours from the conclusion of the concerned shareholders' meeting".
To begin with, this requirement shall be applicable on the top 500 listed entities based on market capitalisation, computed as on today.
