SEBI to relax norms for submitting consolidated results
11 Jul 2008
Mumbai: The Securities and Exchange Board of India (SEBI) has proposed to increase the time period for submitting consolidated quarterly financial statements to stock exchanges at by big corporates.
''It is proposed that the existing timeline (within one month at the end of each quarter) may be extended to two months for those companies, which opt to submit to stock exchanges the consolidated financial results in addition to standalone financial results," SEBI said in a statement.
The market regulator has sought comments on the proposals by 26 July.
The move follows representations received by the SEBI on changes to Clause 41 of the listing agreement relating to financial statements.
Companies with global operations have also cited practical problems in submitting consolidated financial statements and preferred longer periods for complying with the requirements.
The move is expected to improve corporate governance and bring in greater transparency, helping to reflect the true position of companies.
SEBI had done away with the requirement of submitting limited review reports on unaudited quarterly financial results before companies' boards of directors as it was "strenuous".
The SEBI is also working with the Reserve Bank of India to finalise new data reporting norms to capture investment from sovereign wealth funds in India. The issue is expected to be discussed at the next meeting of the high-level committee on capital markets (HLCC) comprising financial sector regulators and finance ministry officials.
It will form the basis for a review of the regulatory architecture governing sovereign wealth funds in addition to addressing basic issues like definition of such funds. A date for the HLCC meeting is yet to be finalized.
