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SEBI turns the screws on companies

The Securities and Exchange Board of India, in line with international standards, has asked companies to provided unaudited results every quarter, beginning the quarter of June 1998 (India's financial year begins on April 1). Companies will have to provide these results within a month of the end of the quarter. However, if a company prefers to provide an audited result after the last quarter, it can do so in two months' time.

SEBI, the market regulator, has also expanded the list of material events that affect a company and which must be informed the stock exchange immediately. The disclosure of material events

Companies will also now have to publish details of the deployment of funds mobilised via public or rights issues every half year. At present, such details are published annually.

The accounting of unaudited results sent to the stock exchanges and newspapers will henceforth will have to be on the same method as used the previous year. In case a company changes the accounting method, then the previous year should be republished along the new accounting method to enable easy comparison.

The Bhave Committee had recommended the above changes, especially continuous disclosures.