Last week, the Securities and Exchange Board of India (SEBI) required stock exchanges to change their listing agreements. The changes are intended to improve financial reporting by listed companies in India.
As a result, with effect from the quarter or financial year ending December 31, 2011, when listed companies disclose quarterly results to their stock exchanges, they will now need to provide comparative data from the immediately preceding financial quarter. Listed companies will also need to submit results of their last financial quarter when they submit their annual audited and, if unaudited (interim) financial statements are submitted these submissions will need to be accompanied with a limited review report issued by the auditors.