Disclose financial fallout from coronavirus, Sebi tells firms

India’s markets regulator on Wednesday directed firms which have publicly traded securities, together with shares and bonds, to reveal broad-ranging particulars in regards to the monetary fallout from the coronavirus pandemic.

The Securities and Exchange Board of India (Sebi) discovered that listed firms have solely provided sketchy particulars associated to shutdown of operations and, in some circumstances, updates about sanitation and security measures at places of work underneath the itemizing obligation and disclosure necessities (LODR). “The number of entities that have disclosed the impact is, however, small,” Sebi mentioned.

Listed entities, Sebi mentioned, ought to be sure that all traders have entry to well timed, satisfactory and up to date data. Following Sebi’s instructions, firms will now have to guage and disclose the influence of pandemic on their companies, each qualitatively and quantitatively.

They can even have to tell traders in regards to the influence of covid-19 on points equivalent to capital, monetary assets, profitability, liquidity, skill to service debt and different monetary liabilities, property, inside monetary controls, provide chain, demand for services and products and current contracts that aren’t being fulfilled. Most importantly, in addition they need to assess and disclose the long-term influence on the enterprise resulting from covid-19.

“The above list is illustrative and not exhaustive,” mentioned Sebi. While submitting monetary statements underneath itemizing obligation and disclosure necessities, listed entities might must specify the influence of pandemic on their statements to the extent doable, Sebi added.

So far, solely banks and non-bank lenders have disclosed modifications in provisioning for sure borrower accounts due to the influence of covid-19.

The market regulator warned firms ought to to not resort to selective disclosures.