In a notification dated 19th November, 2018, the Securities Exchange Board of India (“SEBI”) mandates all listed entities to disclose the reasons for delay in filing of financial results as per the timeline specified under the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“LODR”).
Background:
Regulation 33 (3) of the LODR specifies certain time frames for filling financial results with the stock exchanges. All listed entities are required to file financial results quarterly and annually with the stock exchanges. The prescribed time line for the same is 45 days from end of each quarter except the last quarter of the year.
SEBI has prescribed several stringent measures for non-complying with the obligations casted on the part of the listed entities regarding filing of financial results with the stock exchanges such as levy of penalties, freezing of promoter shareholding, suspension of trading etc.
It has been observed by SEBI that listed entities are little reluctant on complying with such obligations, further in certain cases the listed entities in the past has intimated stock exchanges about non-submission of financial results on time but have not provided any reasons for the same.
SEBI considering the present scenario in this regard has prescribed that in cases of non-filing of financial results on time by the listed entities to the stock exchange, the listed entities have to intimate the stock exchange about the same by stipulating detailed reasons for it and the same has to be filed with the stock exchange within 1 working day from the due date of submission of financial results. In cases, where such decisions regarding delay in the submissions of financial results has been taken by the listed entities prior to the due date, the listed entities have to intimate stock exchange with detailed reasons regarding the same within 1 working day from date of taking of such decision.
Source: Securities Exchange Board of India
