The Securities and Exchange Board of India (“SEBI”) has issued a circular on November 19, 2018 requiring any listed entity who does not submit its financial results in accordance with the timelines specified in Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”), to disclose detailed reasons for such delay to the stock exchanges within one working day of the due date of submission for the results as required under Regulation 33 of the Listing Regulations. However, if the decision to delay the results was taken by the listed entity prior to the due date, the listed entity shall disclose detailed reasons for such delay to the stock exchanges within one working day of such decision.  

Regulation 33 of the Listing Regulations inter alia specifies timelines for submission of financial results by listed entities. Accordingly, the quarterly and annual financial results are required to be submitted by listed entities to the stock exchanges within forty five/sixty days from the end of quarter/financial year. While the delay in submission of financial results is intimated, the reasons for the same were not disclosed/ were not brought out clearly to the stock exchanges. Hence, a need for disclosure by listed entities of reasons for delay in submission of financial results arose.  

The circular has come into force with immediate effect.