Under the proposed norms, the submitted quarterly financial results will be approved by the Board of Directors. Further, the financial results submitted to the stock exchange shall be signed by the Chairman or Managing Director or Whole Time Director. In the absence of all of them, it should be signed by any other director of the listed entity who is duly authorized by the board of directors to sign the financial results.
Under the current regulation, listed non-convertible securities require quarterly results to be taken on record by the board of directors and signed by the managing director/executive director. Rules applicable to entities holding specified listed securities require quarterly financial results to be approved by the board of directors and signed by the chairman or managing director or whole-time director or in the absence of all of them, any other director. Authorized by the Board of Directors.
The move follows Finance Minister Nirmala Sitharaman’s announcement in the Budget for the financial year 2023-24 calling for simplification, simplification and reduction of the cost of compliance for financial sector participants.
SEBI constituted various working groups to recommend measures to facilitate and facilitate compliance under various SEBI regulations.
Among other things, it is proposed to align the provision regarding disclosure of fraud/default in respect of price sensitive information for entities listed with non-convertible securities with equity listed entities.
The committee members recommended a common definition of ‘fraud’ for equity and debt listed entities.
The consultation paper also proposes to reduce the timeline for reporting record date to stock exchanges by entities listing non-convertible securities from ‘minimum seven working days’ to ‘minimum three working days’.
Filing of all disclosures by listed entities having non-convertible securities listed with stock exchanges is proposed to be done in XBRL format as per the provision specified for equity listed entities.
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