Sebi eases compliance norms on consolidated results for banks, insurance companies

NEW DELHI: Markets regulator Sebi on Tuesday gave relaxation to listed banks and insurance companies for pub

lishing consolidated financial results for June quarter in the wake of Coronavirus pandemic. In addition, it has extended the exemption given to listed companies from pub

lication of advertisement in newspapers about their board meetings, financial results and other events till June 30, Sebi said in a circular.

Earlier, the exemption was given till May 15.

In view of the continuing

lockdown and the resultant bottlenecks relating to print versions of newspapers... exemptions from publication of advertisements in newspapers are extended for all events scheduled till June 30, 2020, the regulator noted.

Also, Sebi has eased compliance norms pertaining to requirement of sending physical copies of annual reports to shareholders; proxy forms for general meeting and dividend warrants or cheques. Listed entities which are banking and / or insurance companies or having subsidiaries which are banking and / or insurance companies may submit consolidated financial results ... for the quarter ending June 30, 2020 on a voluntary basis, Sebi said.

However, they shall continue to submit the standalone financial results, it added.

If such listed entities choose to publish only standalone financial results and not consolidated financial results, they need to give reasons for the same, it noted.

This comes after the regulator received representations from listed entities that are banks or insurance companies highlighting the challenges in preparing consolidated financial results in view of different accounting standards being followed by companies belonging to same group and the difficulties in restating those financials as per IND-AS due to the prevailing circumstances in view of COVID- 19.