BackSebi eases compliance norms for listed firms
Sebi’s decision is in line with a 5 May corporate affairs ministry circular allowing companies to hold annual general meetings through video conferencing or any other audio-visual means in 2020
PremiumThe Securities and Exchange Board of India (Sebi) on Tuesday further eased compliance requirements for listed companies, with a prolonged lockdown continuing to hamper business operations.
The markets regulator scrapped, for 2020, the requirement of companies to dispatch to holders of securities in all cases physical copies of annual reports and proxy forms mentioning that a holder may vote for or against a resolution. It also clarified on proxies and their right to vote.
Sebi’s decision is in line with a 5 May corporate affairs ministry circular allowing companies to hold annual general meetings through video conferencing or any other audio-visual means in 2020.
The market regulator had received representations from listed banks and insurance firms, and companies that have banks or insurance companies as subsidiaries, highlighting the challenges in preparing consolidated financial results, because of their different reporting standards and the continued lockdown.
All listed companies other than banks and insurance companies have adopted Indian Accounting Standards (Ind-AS) for financial reporting. The Reserve Bank of India and the insurance regulator have not yet decided on an implementation date for financial sector companies.
Sebi cited the “different accounting standards being followed by companies belonging to the same group and the difficulties in restating those financials as per IND-AS due to the prevailing circumstances in view of covid-19 pandemic" and granted banks and insurance companies freedom from filing consolidated financial results. The markets regulator said that they can do so on a voluntary basis.
“If such listed entities choose to publish only standalone financial results and not consolidated financial results, they shall give reasons for the same," said Sebi in the circular.
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