Sebi issues consultation paper on disclosure requirements for listed firms
New Delhi, February 20, 2023
Capital markets regulator Sebi on Monday came out with a consultation paper on streamlining disclosure requirements by listed entities.
In its consultation paper, Sebi is looking to address the challenges faced with regard to submission of the financial result for the first time by newly listed firms and related to timeline to fill up vacancy of directors, Compliance Officer, Chief Executive Officer (CEO) and Chief Financial Officer (CFO) in listed entities.
Also, it is looking to address the issue of freezing of demat accounts of the Managing Director, Whole-time director and CEO of a listed entity for continuing non-compliance with the LODR Regulations or non-payment of fines by a listed entity.
In order to provide adequate time to newly-listed entities to disclose their first financial results post-listing, Sebi has proposed that at least 15 days from the date of listing may be provided for such disclosures to newly-listed entities.
"Listed entity, post listing, shall submit its first financial results, quarterly or annually as the case may be, immediately succeeding to the periods for which financial statements were disclosed in its offer document for the initial public offer, as per the timeline indicated... as applicable, or within 15 days from the date of listing, whichever is later," Sebi said.
This comes after Sebi received representations regarding challenges faced by the newly-listed entities immediately after their listing and about the gap in the current regulatory provisions for ensuring timely disclosure of the first financial results of such newly-listed entities.
The regulator has sought comments from public till March 6 on the proposals.
[Press Trust of India]