Clarification on changes in timeline / disclosure requirements for Quarterly and Annual Financial results

Clarification on amendments to clause 41 of the Equity Listing Agreement

Securities and Exchange Board of India [SEBI] had, on 5 April 2010, directed Stock Exchanges to amend the Equity Listing Agreement [LA]. One of the amendments to Clause 41 of the LA relates to inter alia timelines for submission, disclosure and publication of quarterly and annual financial results. As per the amended Clause 41, listed entities shall disclose:

• On standalone or consolidated basis, their quarterly (audited or un-audited with limited review), financial results within 45 days from the end of every quarter.
• Audited annual results on stand-alone as well as consolidated basis within 60 days from the end of the financial year for such entities, where they opt to submit annual audited results in lieu of the unaudited financial results with limited review for the last quarter.

National Stock Exchange of India Limited [NSE] has, on 7 April 2010, issued a circular clarifying the effective date of applicability of above referred amendment to Clause 41 of the LA. Accordingly, listed entities will be required to publish financial results as under:

• In respect of annual audited results – date of applicability shall be year ended March 2010 (i.e. FY 2009-10)
• In respect of quarterly results – date of applicability shall be quarter ended March 2010

Sources:

(i)     Circular No. NSE/CML/201 0/02 dated 7 April 2010 issued by NSE

(ii)   Circular No. CIR/CFD/DIL/1/2010 dated 5 April 2010 issued by SEBI

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