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Sebi nod for concise annual statement to shareholders

Sebi nod for concise annual statement to shareholders
PTI
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First Published: Thu, Apr 26 2007. 09 40 PM IST
Updated: Thu, Apr 26 2007. 09 40 PM IST
Mumbai: Stock market regulator Securities and Exchange Board of India (Sebi), on Thursday, allowed listed companies to send only the salient features of their balance sheet to their shareholders instead of the complete report.
With the proposed amendments to Clause 32 of the equity listing agreement, a company will have to send a statement containing salient features of the balance sheet, the profit and loss account and the auditor’s report in place of the full balance sheet and the annual report, Sebi said in a circular.
The market regulator directed all stock exchanges to appropriately amend Clause 32 of the listing agreement which they sign with the companies at the time of listing.
Sebi has done away with the requirement of sending annual reports to shareholders as most of the information is available in the public domain including websites of the various companies as well as the stock exchanges, the Sebi circular said.
The amendment, which comes into force with immediate effect, will align Clause 32 of the listing agreement with Section 219 of the Companies Act, it said.
A company, however, would be required to send the full and complete balance sheet, profit and loss account and the auditor’s report if so demanded by a shareholder in writing, the circular said.
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First Published: Thu, Apr 26 2007. 09 40 PM IST
More Topics: Money Matters | Equities |