Mumbai: India’s markets regulator SEBI directed companies that have publicly traded securities, including shares and bonds, to disclose broad-ranging details about the financial fallout from the coronavirus pandemic.
The Securities and Exchange Board of India found that listed companies have only offered sketchy details related to shutdown of operations and, in some cases, updates about sanitation and safety measures at offices under the listing obligation and disclosure requirements (LODR).
"The number of entities that have disclosed the impact is, however, small", SEBI said.
Listed entities, SEBI said, should ensure that all investors have access to timely, adequate and updated information.
Following SEBI’s directions, companies will now have to evaluate and disclose the impact of pandemic on their businesses, both qualitatively and quantitatively.
They will also have to inform investors about the impact of covid-19 on issues such as capital, financial resources, profitability, liquidity, ability to service debt and other financial liabilities, assets, internal financial controls, supply chain, demand for products and services and existing contracts that are not being fulfilled.
Most importantly, they also have to assess and disclose the long-term impact on the business due to COVID-19.
Asianet.in/News Desk: Asianet Online