Sebi eases compliance norms on consolidated results for banks, insurers

The Securities and Exchange Board of India (Sebi) on Tuesday liberalised guidelines governing publishing of results and other compliance norms for listed entities as it eased norms pertaining to the requirement of sending physical copies of annual reports to shareholders, proxy forms for a general meeting and dividend warrants or cheques.

The regulator has relaxed the stipulation for listed banks and insurance companies for publishing consolidated financial results for June quarter now as “voluntary basis” in the wake of COVID-19.

Further, Sebi said in a circular, that the exemption given to listed companies from publication of advertisement in newspapers about their board meetings, financial results and other events has been extended till June 30. Earlier, the exemption was till May 15.

“Listed entities which are banking and insurance companies or having subsidiaries which are banking and insurance companies may submit consolidated financial results for the quarter ending June 2020 on a voluntary basis,” Sebi said. However, they must continue submitting standalone financial results, it added.

With regard to the requirement of sending physical copies of annual reports to shareholders, Sebi has dispensed with this norm for listed entities who conduct their AGMs during calendar year 2020 (till December 31, 2020). “The requirement … is dispensed with temporarily, in case of meetings held through electronic mode only,” Sebi said. It has also eased the compliance requirement related to dividend warrants or cheques.

The norms prescribe the issuance of ‘payable-at-par’ warrants or cheques in case it is not possible to use electronic modes of payment. Further, in case the amount payable as dividend exceeds Rs 1,500 the ‘payable-at-par’ warrants or cheques shall be sent by speed postage.

Source: The Indian Express