On Tuesday, the Securities and Exchange Board of India (SEBI) further eased compliance requirements for listed companies as prolonged lockdown hampered business operations.
For 2020, the markets regulator has scrapped the requirement of companies to dispatch to holders of securities physical copies of annual reports and proxy forms mentioning that a holder may vote for or against a resolution. This included clarification on proxies and their right to vote.
This decision comes after corporate affairs ministry last week allowed companies to hold annual general meetings through video conferencing or any other audio-visual means in 2020.
Further, SEBI has allowed banks and insurance companies freedom from filing consolidated financial results and said that they can do so on a voluntary basis.
The decision comes after the market regulator received representations from listed banks and insurance firms, and companies that have banks or insurance companies as subsidiaries, are facing challenges in preparing consolidated financial results because of their different reporting standards and the continued lockdown.
All listed companies other than banks and insurance companies have adopted Indian Accounting Standards (Ind-AS) for financial reporting and RBI as well as IRDAI have not yet decided on an implementation date for financial sector companies.
Sebi cited the "different accounting standards being followed by companies belonging to the same group and the difficulties in restating those financials as per IND-AS due to the prevailing circumstances in view of covid-19 pandemic" as the reason for allowing such listed entities to choose to publish only standalone financial results and not consolidated financial results, it said in its circular.