Now, an investor can expect critical company information at a much quicker rate, with leading stock exchange BSE putting in place a new corporate announcement filing system. The new framework will lead to virtually instant dissemination of company announcements on the exchange website and eliminate any time gap for price-sensitive information to reach investors.
Financial results, change in directorates, postal ballot, outcome of board meeting, regulatory action and launch of new products, among others, will be part of the new information dissemination system in the first phase, BSE said in a statement.
The new mechanism will be on 365 days and 24×7 to provide up-to-date, timely and accurate information to the investors and news agencies at the quickest possible speed. “The exchange has put up a new Corporate Announcement Filing System (CAFS) with effect from March 1, 2017,” BSE said.
With the implementation of CAFS, BSE will be initiating seamless dissemination of corporate announcements without pre-verification by the exchange.
Post dissemination of information on the website, BSE will carry out verification checks for adequacy and accuracy as mandated by market regulator Sebi from time to time, as is being done at present.
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Current delay between reports by a company and availability of the information on website varies from 2 seconds to 10 seconds in most cases. The exchange is trying to improve and reduce the delay to less than 2 seconds.
BSE said certain filings like shareholding pattern, corporate governance report and voting results will not be accepted through CAFS in the first phase.
Certain other filings which include disclosures under PIT regulations and filings pertaining to mutual funds and debt, which will continue to be accepted in the existing mode and covered under CAFS at a later stage.
Initially, the system will be operated in ‘Beta’ mode and will be available within the existing BSE filing portal – Listing Centre.
Designated company personnel who file the corporate action will be required to first register their identification details using one-time password verification, following which they will be allowed to submit corporate action for their respective firms.