SEBI’s advisory on disclosure of material impact of COVID-19 by listed companies
SEBI’s advisory on disclosure of material impact
This issue of First Notes aims to provide an overview of the SEBI advisory.
The Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations) requires listed companies to disclose material events which have a bearing on their performance or operations under various provisions.
In the wake of coronavirus (COVID-19), SEBI has observed that many of the listed companies are providing disclosures primarily relating to shutdown of operations owing to the pandemic and resultant lockdowns while some have provided information relating to actions taken towards sanitation, safety, etc. However, a very small number of companies have disclosed the financial impact of the pandemic.
Accordingly, on 20 May 2020, SEBI issued an advisory and encouraged listed companies to evaluate the impact of the COVID-19 pandemic on their business, performance and financial results, both qualitatively and quantitatively, to the extent possible and disseminate the same.
This issue of First Notes aims to provide an overview of the SEBI advisory.
To access the text of the SEBI advisory, please click here.
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