SEBI TO ACCEPT ABRIDGED ANNUAL REPORTS

Keeping in mind the rising costs of compliance and increasing availability of information about listed companies in the public domain, capital market regulator Sebi has permitted companies to dispatch a stand-alone statement (abridged annual report) encapsulating all salient features of the final account. The companies, however, have been instructed that they send the complete final accounts – balance sheet, profit and loss account and auditors’ report – only on written request from shareholders.

Editorial Comment :

Shareholders should be allowed to convey their option to depositories who in turn may include this in data disseminated to corporates. This will ensure saving of unnecessary paper work and will also address complain of non-response by companies as in past.