The Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations) lay down broad principles for periodic disclosures to be given by the listed entities operating in different segments of the capital markets. Since its notification, SEBI has made significant amendments to various provisions of the Listing Regulations to help streamline its implementation by the listed entities. In September 2021, SEBI has issued clarifications in the form of Frequently Asked Questions (FAQs) and provided guidance to certain important requirements under the Listing Regulations e.g., definition of a related party, approval of material related party transactions and disclosures to be provided with the stock exchange(s). In this issue of Accounting and Auditing Update (AAU), we aim to summarise the key clarifications issued by SEBI with respect to the provisions of the Listing Regulations applicable to the listed entities.
Additionally, SEBI has issued amendments to the provisions applicable to issuers of Non-Convertible Securities (NCS) through the SEBI (Listing Obligations and Disclosure Requirements) Fifth Amendment Regulations, 2021. The amendments are expected to align the compliances of the debt listed companies (mainly high value) with those prescribed for the equity listed companies and also enhance the disclosures’ obligations of debt listed companies. We have analysed the financial results for the quarter ended 30 September 2021 published by 50 entities listed on the National Stock Exchange (NSE), that have issued NCS. In our article, we summarise the analysis basis the quarterly and half-yearly disclosures provided by the companies covered in this analysis.
Recently, the Ministry of Corporate Affairs (MCA) has allowed companies whose Annual General Meetings (AGMs) are due in the year 2021 or who are proposing to organise AGMs in 2022 for the financial year ending on or before 31 March 2022 to conduct their AGMs through Video Conferencing (VC) or Other Audio-Visual Means (OAVM) on or before 30 June 2022. Further, internationally, the International Accounting Standards Board (IASB) has issued a narrow-scope amendment to the transition requirements in IFRS 17, Insurance Contracts. Our regulatory updates article covers these and other important regulatory developments in India and internationally.