Companies seek Sebi approval to defer or merge Q1 results
Published On: Wednesday, May 20, 2020 | By: Team KnowMyStock
Corporates have approached Sebi to allow listed firms to either postpone their financial results for the June quarter or merge them with the September numbers amid growing concern that wide losses and decline in sales between April-June could unsettle investors and put off banks. Against the backdrop of a slide in stock prices following lockdown, some of the leading industry bodies have also urged the market regulator to consider rules on the pricing of preferential equity offer and open offer — to enable capital infusion — as well as simplify the process to delist a company through the reverse book building route.
While stock analysts and investors have started pricing in a likely drop in the bottom line for the Q1, actual results may add to the shock. “Losses would eat into net worth and lower borrowing capacity of companies. This is an unprecedented situation, but the regulator will have to examine the proposal against transparency and corporate governance standards,” said experts
Source: https://economictimes.indiatimes.com
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