1. DELAY IN SUBMISSION OF FINANCIAL RESULTS – REVEAL THE REASON

SEBI vide its Circular dated November 19, 2018 has directed the listed entities to disclose detailed reasons for delay in submission of Financial Results and not just the fact of delay. It came to the notice of the Capital Markets Regulator that though the listed companies were informing the Stock Exchanges of the delay in submission of the Results but the reasons there for were not being mentioned explicitly. This was leaving the investors unaware of the fate of their investments. So, vide the above mentioned Circular, SEBI has made it mandatory to mention the clear reason for the delay in submission of the financial results.

Regulation 33 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 mandates to submit the quarterly/annual Financial Results within 45 days/60 days of end of the quarter/year respectively.  

Now, pursuant to the above Circular, with immediate effect, detailed reason of any delay in filing such results shall have to be informed to the Stock Exchange(s) within 1 (one) working day of the due date of submission and if the decision to delay the submission is taken by the Listed entity prior to the due date, then within 1 (one) working day of such decision.

CP Comments:

It may please be noted that submission of reason for delay would not save company from fines prescribed by SEBI vide its SOP circular dated May 03, 2018 and consequent suspension of trading of shares of the entity and freezing of shares of Promoter and Promoter group in case of continuing delay.

2. Formats for publishing financial results

MCA, vide notification dated October 11, 2018, has made certain amendments in Division I, Division II and Division III of Schedule III to the Companies Act, 2013. Accordingly, SEBI has clarified about the applicability of formats for presentation of financial results as under: 

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