An advisory has been issued by SEBI on listed entities to disclose the material impact of the COVID-19 Pandemic on their businesses under SEBI [Listing Obligations and Disclosure Requirements] (LODR) Regulations, 2015. The purpose of such an advisory is to ensure that all investors have timely, adequate, and updated information. An illustrative list has been provided by SEBI which the listed companies may consider disclosing is given as below:

• Impact of the COVID-19 pandemic on the business;


• Ability to maintain operations including the factories/units/office spaces functioning and closed down;


• Schedule, if any, for restarting the operations;


• Steps taken to ensure smooth functioning of operations;


• Estimation of the future impact of COVID-19 on its operations;


• Details of the impact of COVID-19 on listed entity’s –
  
  
  1. capital and financial resources;
  
  
  2. profitability;
  
  
  3. liquidity position;
  
  
  4. ability to service debt and other financing arrangements;
  
  
  5. assets;
  
  
  6. internal financial reporting and control;
  
  
  7. supply chain;
  
  
  8. demand for its products/services;


• Existing contracts/agreements where non-fulfillment of the obligations by any party


• Other relevant material updates about the listed entity’s business.


 

SEBI has also advised the listed entities to include the impact of the pandemic on their financial statements. It also urged the companies not to be selective in disclosing the material information and keep in mind the disclosures and obligations expected under the SEBI (LODR) Regulations, 2015 on disclosure and transparency.

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