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Rediff.com  » Business » Sebi allows firms to send statement instead of annual report

Sebi allows firms to send statement instead of annual report

Last updated on: April 26, 2007 19:33 IST

The Securities and Exchange Board of India on Thursday allowed listed companies to send only salient features of the balance sheet to their shareholders instead of the complete report.

With the proposed amendments to Clause 32 of the equity listing agreement, a company will have to send a statement containing salient features of the balance sheet, profit and loss account and the auditor's report in place of full balance sheet and annual report, Sebi said in a circular issued on Thursday.

The market regulator directed all stock exchanges to appropriately amend Clause 32 of the listing agreement which they sign with the companies at the time of listing.

Sebi has done away with the requirement of sending annual reports to shareholders as most of the information was available in public domain including websites of the company and stock exchanges, the circular said.

The amendment, which comes into force with immediate effect, will align Clause 32 of the listing agreement with Section 219 of the Companies Act, it said.

A company, however, would be required to send the full and complete balance sheet, profit and loss account and the auditor's report if so demanded by a shareholder in writing.

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