The Hindu : Business : Listing agreement amended

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Friday, Dec 28, 2007
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Business

Listing agreement amended

Special Correspondent

Strengthens provisions on utilisation of issue proceeds

Electronic filing through CFDS mandatory
100 cos. will be short-listed for CFDS in Phase-I

MUMBAI: The Securities and Exchange Board of India (SEBI) on Thursday amended the Equity Listing Agreement by strengthening the provisions for monitoring utilisation of issue proceeds and mandating electronic filing through the corporate filing and dissemination system (CFDS) for 100 companies suggested by the stock exchanges.

In a phased manner, all listed companies would be required to file information with the stock exchanges only through CFDS.

However, in the first phase, 100 companies short-listed by the exchanges are mandated to make their submissions through CFDS from the period starting from January 1, 2008. In view of a new portal, CFDS, put in place jointly by the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) at the URL, www.corpfiling.co.in , SEBI has decided to mandate filing through CFDS by 100 companies suggested by the exchanges.

Common platform

CFDS offers a XBRL enabled common platform for listed companies to file such information, statements and reports as may be specified by the participating stock exchanges (BSE and NSE) in this regard and also a common place for investors to view information related to listed companies.

“Over a period, other modes of sending public information to stock exchanges for compliance with clauses of the Equity Listing Agreement shall be dispensed with, including filing through EDIFAR. Companies filing through CFDS are not required to make filing through EDIFAR,” SEBI stated.

Proceeds utilisation

On utilisation of the issue proceeds, SEBI stated that “The monitoring report on utilisation of issue proceeds filed by the monitoring agency, if appointed at the time of issue, shall be placed before the audit committee of the company.

“The audit committee shall review such reports as well as the statement indicating material deviations in the utilisation of issue proceeds and make appropriate recommendations to the board of the company.”

Further it stated that “such material deviations shall be informed to the stock exchange and simultaneously, material deviations and adverse comments of the Audit committee and monitoring agency shall be made public through advertisement in newspapers.”

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