SEBI eases compliance norms on consolidated results for banks, insurance cos


New Delhi: Markets regulator Sebi on Tuesday gave leisure to listed banks and insurance firms for publishing consolidated monetary results for June quarter within the wake of coronavirus pandemic.

In addition, it has prolonged the exemption given to listed firms from publication of commercial in newspapers about their board conferences, monetary results and different occasions until June 30, Sebi stated in a round.

Earlier, the exemption was given until May 15.

In view of the persevering with lockdown and the resultant bottlenecks regarding print variations of newspapers… Exemptions from publication of ads in newspapers are prolonged for all occasions scheduled until June 30, 2020, the regulator famous.

Also, Sebi has eased compliance norms pertaining to requirement of sending bodily copies of annual experiences to shareholders; proxy varieties for common assembly and dividend warrants or cheques.

Listed entities that are banking and / or insurance firms or having subsidiaries that are banking and / or insurance firms could submit consolidated monetary results … For the quarter ending June 30, 2020 on a voluntary foundation, Sebi stated.

However, they shall proceed to submit the standalone monetary results, it added.

If such listed entities select to publish solely standalone monetary results and never consolidated monetary results, they should give causes for the identical, it famous.

This comes after the regulator acquired representations from listed entities which can be banks or insurance firms highlighting the challenges in making ready consolidated monetary results in view of various accounting requirements being adopted by firms belonging to identical group and the difficulties in restating these financials as per IND-AS because of the prevailing circumstances in view of COVID- 19.

Under the LODR (Listing Obligations and Disclosure Requirements), in case a listed entity has subsidiaries, such entity must submit quarterly/year-to-date consolidated monetary results.

The Companies (Indian Accounting Standards (Ind-AS)) Rules stipulate the adoption and applicability of Ind-AS in a phased method starting from monetary 12 months 2016-17.

Currently, Ind-AS is relevant to all listed entities except these within the banking and insurance sectors. RBI and IRDA haven’t but notified the date of implementation of Ind-AS for banks and insurance firms, respectively.

With regard to requirement of sending bodily copies of annual experiences to shareholders, Sebi has disbursed with this norm for listed entities who conduct their AGMs throughout calendar 12 months 2020 ( until December 31, 2020).

The norms require listed entity to ship proxy varieties to holders of securities in all instances mentioning {that a} holder could vote both for or towards a decision.

The requirement … Is disbursed with briefly, in case of conferences held via digital mode solely. This leisure is obtainable for listed entities who conduct their AGMs via digital mode throughout the calendar 12 months 2020, Sebi stated.

Sebi has additionally eased compliance requirement associated to dividend warrants or cheques.

The norms prescribe issuance of ‘payable-at-par’ warrants or cheques in case it’s not doable to make use of digital modes of cost. Further, in case the quantity payable as dividend exceeds Rs 1,500 the ‘payable-at-par’ warrants or cheques shall be despatched by velocity postage.

Sebi stated the necessities of this regulation will apply upon normalization of postal companies. However, in instances the place e-mail addresses of shareholders can be found, listed entities must endeavour to acquire their checking account particulars and use the digital modes of cost.

This round would come into pressure with quick impact, the regulator famous.

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