To ensure consistency, transparency, and comparability in the financial disclosures of listed entities, the Securities and Exchange Board of India (SEBI) has laid out detailed guidelines under Chapter I of the Listing Regulations. These guidelines pertain to Regulations 52 and 54 and provide standardized formats for quarterly, half-yearly, and annual financial filings. These filings are mandatory for all listed entities that have listed non-convertible debt securities.
Here’s a breakdown of the key components of SEBI’s directives and the implications for listed entities:
- Quarterly and Annual Financial Results
As per Regulations 52(1) and 52(2) of the Listing Regulations, listed entities must submit standalone financial results quarterly, and standalone and consolidated results annually to the stock exchanges and also publish them on their websites.
Content Requirements:
The financial statements must follow the structure outlined in Schedule III of the Companies Act, 2013, excluding detailed notes and sub-classifications.
Entities issuing secured non-convertible debt securities must disclose the extent and nature of security created and maintained, as required under Regulation 54(3).
Additional line items specified under Regulation 52(4) must also be included.
Format:
The results must include data for:
Current quarter
Previous quarter
Corresponding quarter of the previous year
Year-to-date figures for current and previous financial years
Annual results
All figures should indicate whether they are audited or unaudited, with dates specified clearly.
- Half-Yearly Statement of Assets and Liabilities
Under Regulation 52(2)(f), listed entities must file the Statement of Assets and Liabilities on a half-yearly basis.
Content Requirements:
The format must mirror the balance sheet layout in Schedule III of the Companies Act, 2013, without including detailed sub-classifications or notes.
Format:
The statement must compare the:
Current half-year end or year-end figures
Previous year-end figures
Each must clearly state whether the data is audited or unaudited.
- Half-Yearly Statement of Cash Flows
Also mandated under Regulation 52(2)(f), the Statement of Cash Flows must be presented using the indirect method, as per Accounting Standard-3 (AS-3) or Indian Accounting Standard 7 (Ind AS 7), depending on applicability.
Format:
Cash flow statements should include:
Cash flows for the current half-year/year-end
Corresponding prior period figures
Audited or unaudited status must be specified.
- Industry-Specific Formats
Banking and insurance companies are exempt from these standard formats and must follow those prescribed by their respective regulators, such as the RBI or IRDAI.
- Newspaper Publication Requirements
Per Regulation 52(8), financial results must also be published in newspapers, following the format detailed in Annex-I-A of the Listing Regulations.
- Disclosure of Delays
Timely disclosure is essential. If financial results are not submitted on time:
The entity must explain the reason to the stock exchanges within one working day of the due date.
If the delay was decided in advance, the explanation must be shared within one working day of that decision.
Conclusion
By prescribing specific formats and timelines for financial disclosures, SEBI reinforces its commitment to investor protection, transparency, and regulatory compliance. Listed entities must ensure meticulous adherence to these formats to maintain credibility and meet regulatory obligations efficiently. Adopting these standards not only fulfills legal mandates but also strengthens investor trust and market discipline.