The Securities and Exchange Board of India (SEBI) vide its Circulars dated November 13, 2018 and November 19, 2018 brought in more disclosure requirements by Listed Entities in India as briefed below:

  1. Circular dated November 13, 2018

As per Part C of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 all listed entities shall make disclosure of commodity price risk or foreign exchange risk and hedging activities as part of the Corporate Governance Report in the Annual Report.

The SEBI, after taking into consideration the recommendations of the Kotak Committee, issued this Circular prescribing the format for disclosing the following details by the listed entities where the exposure of the listed entity in the particular commodity is material:

  1. Risk management policy of the listed entity with respect to commodities including through hedging.
  2. Exposure of the listed entity to commodity and commodity risks faced by the entity throughout the year:
  3. Total exposure of the listed entity to commodities in INR
  4. Exposure of the listed entity to various commodities
  5. Commodity risks faced by the listed entity during the year and how they have been managed.
  1. Circular dated November 19, 2018

The SEBI, through this circular, mandated every listed entity to disclose detailed reasons for delay in submitting financial results, within one working day of the due date as per Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Where such decision to delay the results was taken by the listed entity prior to the due date, the reasons thereof shall be disclosed to the stock exchanges within one working day of such decision.

These Circulars indicate that SEBI wants listed entities to be more transparent to enable shareholders to take informed investment decisions.

Mr Prakul Thadi is a Company Secretary and Cost Accountant and holds a Masters degree in Law. He co-founded VirtuaLaw in 2017 and is currently the Chief-Editor of the blog at VirtuaLaw. After having gained an industry experience of 3 years he’s currently pursuing Graduate Insolvency Programme (GIP) at the Indian Institute of Corporate Affairs (IICA), Manesar. His interests spread across varied fields of law and majorly corporate laws.