Sebi proposes to ease compliance for non-convertible securities
Securities and Exchange Board of India (Sebi) on Friday released a consultation paper seeking feedback on proposals, including alignment of provision regarding approval and authentication of financial results for entities having listed non-convertible securities with that for equity listed entities.
Under the proposed norms, the quarterly financial results submitted shall be approved by the board of directors. Further, the financial results submitted to the stock exchange shall be signed by the chairperson or managing director, or a whole-time director. In the absence of all of them, it should be signed by any other director of the listed entity who is duly authorised by the board of directors to sign the financial results.
Under the current regulation, listed non-convertible securities requires quarterly results to be taken on record by the board of directors and to be signed by the managing director/ executive director. Regulations applying to entities with listed specified securities require the quarterly financial results to be approved by the board of directors and signed by the chairperson or managing director, or a whole-time director or in the absence of all of them, by any other director duly authorized by the board of directors.
The move comes following the announcement made by Finance Minister Nirmala Sitharaman in the Budget of FY2023-24 calling for simplifying, easing and reducing cost of compliance for participants in the financial sector.
Sebi constituted various working groups to recommend
