Listed companies are companies whose shares are traded on a stock exchange. They are subject to a number of compliances, which are designed to protect the interests of investors and ensure transparency and fairness in the market.
Annual compliances
Listed companies are required to comply with the following annual requirements:
- Filing of annual return: Every listed company is required to file an annual return with the Ministry of Corporate Affairs (MCA) within 60 days of the end of its financial year. The annual return contains information about the company’s directors, members, financial performance, and other important details.
- Holding of annual general meeting (AGM): Every listed company is required to hold an AGM within six months of the end of its financial year. The AGM is a meeting of the company’s members, where they discuss the company’s performance and take important decisions.
- Appointment of statutory auditors: Every listed company is required to appoint statutory auditors to audit its financial statements. The statutory auditors are responsible for ensuring that the company’s financial statements are true and fair.
Quarterly compliances
Listed companies are also required to comply with the following quarterly requirements:
- Filing of quarterly financial results: Every listed company is required to file its quarterly financial results with the stock exchanges on which its shares are traded within 45 days of the end of each quarter. The quarterly financial results contain information about the company’s revenue, expenses, and profit or loss for the quarter.
- Intimation of changes in shareholding: Every listed company is required to intimate the stock exchanges of any changes in its shareholding pattern that exceed certain thresholds. This is to ensure that the market is aware of any major changes in the ownership of the company.
Other compliances
- Maintenance of books of accounts: Listed companies are required to maintain proper books of accounts and records of their financial transactions.
- Disclosure of related party transactions: Listed companies are required to disclose all related party transactions to the stock exchanges.
- Compliance with insider trading regulations: Listed companies and their directors are required to comply with the insider trading regulations to prevent them from using their privileged information to profit in the stock market.
- Compliance with corporate governance regulations: Listed companies are required to comply with the corporate governance regulations to ensure that they are managed in a transparent and accountable manner.
Listed companies are also required to comply with other requirements under the Companies Act, 2013 and other applicable laws.
Conclusion
Listed company compliances are essential to protect the interests of investors and ensure transparency and fairness in the market. It is important for listed companies to comply with all applicable requirements to avoid penalties and other legal consequences.