Listed cos asked to disclose Covid-19 hit
NEW DELHI:
Markets regulator Sebi asked listed companies to make disclosure about the impact of coronavirus pandemic on their business to investors and stakeholders in a timely and cogent manner.
Listed entities should evaluate the impact of COVID-19 pandemic on their business, performance and financials, both qualitatively and quantitatively, to the extent possible and disseminate the same to investors, the Securities and Exchange Board of India (Sebi) said.
The listed entities should not resort to selective disclosures while disclosing material information related to the impact of COVID-19, it added.
The coronavirus pandemic and the consequent lockdown restrictions imposed by national governments have impacted businesses not only in India but all over the world.
In view of the same, Sebi has granted several relaxations to listed entities in terms of timelines for filing of various reports or disclosures under LODR (Listing Obligation and Disclosure Requirements) Regulations.
"While such a lockdown and disruption is unforeseen and beyond the control of the entities, such events can lead to distortions in the market due to the gaps in information available about the operations of a listed entity," Sebi said.
"Hence, it is important for a listed entity to ensure that all available information about the impact of these events on the company and its operations is communicated in a timely and cogent manner to its investors and stakeholders," it added.
Various provisions under the LODR Regulations already require listed entities to disclose material events which have a bearing on its performance or operations.
Sebi observed that many listed entities have made disclosures under LODR Regulations, primarily intimating shutdown of operations owing to the pandemic and resultant lockdowns.