Sebi on Monday asked listed companies to disclose detailed reasons for delay in submission of financial results to the stock exchanges within one working day of the stipulated deadline.
In case a company decides to delay announcement of results prior to the due date, reasons have to be disclosed within one working day of taking such a decision, according to a circular.
Under the Sebi rules, the quarterly and annual financial results are to be submitted by listed entities to stock exchanges within 45 days and 60 days from the end of the quarter and financial year, respectively.
The latest circular comes into effect immediately, the Securities and Exchange Board of India (Sebi) said.
"The listed entity shall disclose detailed reasons for such delay to the stock exchanges within one working day of the due date of submission for the results," the regulator noted.
Sebi noted that there have been delays in submission of financial results by certain listed entities in the past, but the reasons were not brought out clearly.
In such cases, the investors were often left unawares of the reasons for such delays, which may have had an impact on their investment decision, Sebi said.
Hence, a need for disclosure of reasons for delay in submission of financial results arises, it said.
Accordingly, the regulator has asked that "the listed entity shall disclose detailed reasons for such delay to the stock exchanges within one working day of the due date of submission of the results."