Clarification on SEBI’s Circular dated August 13, 2012 providing for the “Manner of Dealing with Audit Reports filed by Listed Companies.”
Establishment of connectivity with both depositories NSDL and CDSL- Companies eligible for shifting from Trade for Trade Settlement ( TFTS) to Normal Rolling Settlement
SEBI has vide circular no. CIR/CFD/DIL/9/2013 dated June 5, 2013, given clarification with regard to restatement of books of accounts of listed companies. The main concern raised is whether the restatement of books of accounts needs to be carried out in the same F.Y. or in the subsequent F.Y. as a prior period item. It is now clarified that the restatement of books of accounts shall mean that the company is required to disclose the effect of revised financial accounts by way of revised pro-forma financial results immediately to the shareholders through Stock Exchanges.
SEBI has, vide Circular No. CIR/MRD/DP/19/2013, dated June 11, 2013, informed the Stock Exchanges that they may consider shifting the trading in securities specified in Annexure ‘A’ to normal Rolling Settlement, subject to conditions as follows:
At least 50% of other than promoter holdings as per clause 35 of Listing Agreement are in demat mode before shifting the trading in securities of the company from TFTS to normal Rolling Settlement.
There are no other grounds/reasons for continuation of trading in TFTS.
Enhancement in Foreign Investment Limits in Government Debt
SEBI has, vide its Circular No. CIR/IMD/FIIC/8/2013 dated June 12, 2013, informed all Foreign Institutional Investors that the Government of India has enhanced the Government Debt Limits by USD 5 billion (equivalent to approximately INR 29,137 CR converted at the RBI reference rate of 1 USD=INR 58.274 as on June 12,2013 The aforesaid limit of USD 5 billion shall be available for investments only to those FIIs which are registered with SEBI under the categories of Sovereign Wealth Funds (SWFs), Multilateral Agencies, Endowment Fund, Insurance Funds, Pension Funds & Foreign Central Banks.