The Securities and exchange board of India(SEBI) on 24th December 2019 issued a format for statement of deviation in funds raised to be submitted by the listed entities to stock exchanges on a quarterly basis. Since there was no uniformity in the formats of statement of deviation submitted by the listed entities, SEBI has issued a format placed at Annex A to the Circular which shall be followed by the entities.
Salient Features of the Format :
- The format shall be applicable for funds raised by listed entities through public issue, rights issue, preferential issue, QIPs etc,
- The statement of deviation report shall be placed before audit committee of the listed entity for review on quarterly basis and after such review, the comments of audit committee along with the report shall be disclosed/submitted to the stock exchange, as part of the format.
- The entities shall make disclosures on quarterly basis along with the declaration of financial results within 45 days of end of each quarter or 60 days from the end of the last quarter of the financial year, until such funds are fully utilised or the purpose for which these proceeds were raised has been achieved.
- The first such submission shall be made by the listed entities for the quarter ending December 31, 2019.
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