Capital market regulator, Securities and Exchange Board of India (SEBI) on Wednesday announced that it has decided to further relax the timeline for submission of financial results for the quarter ending 31st March 2020 till July 31.
Capital market regulator, Securities and Exchange Board of India (SEBI) on Wednesday announced that it has decided to further relax the timeline for submission of financial results for the quarter ending 31st March 2020 till July 31. The extension comes in the wake of the coronavirus pandemic that has hit business operations across the globe. This is the second time the market regulator has relaxed the timeline for the financial results. Earlier in March, SEBI had eased the timeline for filing financial results till June 30 giving listed firms an extra 45-days to file results.
SEBI in a circular said that it had received representations from listed entities, Chartered Accountant firms, as well as industry bodies that were seeking another extension in the timeline given for the preparation, finalization and submission of financial results for the quarter ending 31st March 2020. Various representations to the SEBI said that they have been facing various difficulties owing to the coronavirus pandemic. Some firms were vocal about disruptions caused by the extension of lockdown, while some had subsidiaries placed in a containment zone making the process of auditing results a challenging one.
Along with the relaxation in reporting quarterly results, listed entities have also been given a relaxation for filing half-yearly and annual results. “Similarly, the timeline under Regulation 52 of the LODR for submission of half yearly and/or annual financial results for the period ending March 31, 2020 for entities that have listed NCDs, NCRPS’, CPs, MDS’ is also extended to July 31, 2020,” SEBI said in a circular. Under the rules, companies have to file annual results within 60 days from the end of the financial year.
SEBI has earlier relaxed the norms of not just reporting financial results but also for filing their shareholding pattern by three weeks while also allowing companies an extra month to file quarterly corporate governance reports. Yesterday, the market watchdog, yesterday also made it easy for stressed listed companies to raise capital by way of preferential issues. With this the firms that have been reeling under the debt burden can raise money from the market. SEBI had also said that the allottees of such preferential issues will be exempted from making an open offer if the acquisition is beyond the prescribed limit.