With the view of enhancing transparency and making disclosures of financial results more accurate, the Bombay Stock Exchange (hereinafter referred to as “BSE”) has made XBRL filing of financial results by listed entities mandatory.
Earlier, listed entities were required to file Corporate Governance Report, Shareholding Pattern and Voting result details in XBRL. BSE through circular DCS/COMP/28/2016-17 dated March 30, 2017, has made it mandatory for all listed entities to submit financial results and limited review report/audit report in XBRL mode.
From April 01, 2017, financial results along with limited review report/audit report are required to be filled in PDF within 30 minutes of conclusion of board meeting through the listing Centre website - Corporate Announcement Filing System. In addition to the above, listed entities are also required to file such statements in XBRL mode within 24 hours of submission of results in PDF. For the purpose of facilitating the filing, BSE has launched excel utility which is available to be downloaded from the listing center portal.
It is pertinent to note that the Insurance companies are exempted from filing their financial results in XBRL mode and they shall continue to file their financial results in PDF mode only.
Filing of financial result in any other mode will be considered as non-submission, therefore, making the entity liable to penalty as prescribed by the Securities and Exchange Board of India under Standard Operating Procedure CIR/CFD/CMD/12/2015 Annexure 1dated November 30, 2015
Fine payable for 1st non-compliance will be INR 5,000 per day till the date of compliance and for each subsequent and consecutive non-compliance will be INR 10,000 per day of non-compliance till the date of compliance. If such non-compliance continues for more than 15 days, additional fine of 0.1% of paid up capital of the entity (as on 1st day of the financial year in which non-compliance occurs) or INR 1 crore, whichever is less. Such non-compliance can also result in suspension of trading in case of consecutive defaults.
Therefore, listed entities are now required to submit their Corporate Governance Report, Shareholding Pattern, Voting Results and Financial results in XBRL mode, digitalizing business reporting and hence making it more transparent.