Debt listed entities under new requirement of quarterly financial results – Implications and actionables

[2021] 130 taxmann.com 382 (Article)

The SEBI (Listing Obligations and Disclosure Requirements) (Fifth Amendment) Regulations, 20211 have increased the compliance burden on the debt-listed entities. Ranging from introducing the corporate governance requirements on High-Value Debt Listed Entities (HVDLEs) to increasing the disclosure and compliance requirements on all debt listed entities, the amendment per se aims to make the current regulatory requirements stringent on the debt listed entities.

One significant amendment under Chapter V, which is applicable on all debt listed entities, is the requirement of submission of financial results on a quarterly basis instead of a half-yearly basis, as was previously the requirement. With this write-up, we will try to understand the implications on the debt listed entities due to change in the periodicity of submission of financial results and the required actionable.

As per the amendment, the debt-listed entities will be required to prepare the quarterly and annual financial results, as per the format specified by the Board. Having said that the said amendment is effective immediately, the format is not yet in place. Accordingly, the extent of actionable required for preparation of quarterly results (like whether results for the 1st quarter and corresponding second quarter, etc needs to be prepared from now and onwards) may not be clear as on date.

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