The BSE and NSE have taken steps to standardize listed companies’ disclosures of important information for investors.
Listed companies are expected to file periodic compliance filings with stock exchanges within the timeframes specified. Stock exchanges have introduced new XBRL-based compliance filing mechanisms with uniform and homogeneous compliance data structures as part of the measures.
The move would not only reduce the regulatory burden on listed firms but will also enable analytics on data given by them, according to a joint statement from the BSE and NSE.
Both exchanges have published XBRL-based filings for equities, debt, Real Estate Infrastructure Trust (REIT), and Infrastructure Investment Trust (InvIT) to facilitate the input of essential clauses of Sebi’s LODR (Listing Obligations and Disclosure Requirements) Regulations. The exchanges stated that they believe that these initiatives will improve the transparency and efficiency of company information for investors.
Listed companies will be required to file information in XBRL format on issues such as investor grievances, shareholding patterns, corporate governance, financial results, annual reports, business responsibility and sustainability reporting, voting results, insider trading, and related party transactions, among others.
This followed a decision by the Sebi Market Data Advisory Committee (MDAC) that XBRL will be implemented for all corporate filings. The committee makes policy recommendations in areas such as standardization of securities market data, access, and privacy. Previously, listed firms were required to provide XBRL-based financial reports beginning in 2015.
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