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NSE proposes XBRL for all corporate announcements

Currently, listed companies are mandated to report their financials in the XBRL format but this is not binding on other business announcements.

November 24, 2022 / 04:30 PM IST

The National Stock Exchange (NSE) has proposed the use of the XBRL (eXtensible Business Reporting Language) format for all key and sensitive corporate announcements made by listed entities.

Currently, listed companies are mandated to use the above format to report their quarterly earnings on bourses under Securities and Exchange Board of India (SEBI)  listing rules. Earlier, companies could submit their financials through a simple PDF (portable document format).

The challenge with PDF is that investors cannot search specific and in many instances time-sensitive information quickly. XBRL is a searchable format which brings all information pertaining to the company at one place. It is an internationally mandated format for reporting.

NSE has now proposed that the format be made mandatory for reporting one-time settlement or inter-creditor agreements, contracts other than those done in normal course of business and fraud or defaults.

The stock exchange has recommended a standard format specimen which the companies can use to report information.

“Stock Exchanges have implemented XBRL based compliance filing mechanism featuring identical and homogenous compliance data structures which will not only ease the compliance burden on listed entities but also will enable analysis on the data submitted by the listed entities,” NSE said in a circular.

The adoption of this format will make it easier for analysts and investors to access and gauge corporate financials and data easily. It would also enable the regulator to oversee effortlessly given the easy access to data on listed entities.

In her press meet post SEBI’s board meet last month, Chairperson Madhabi Puri Buch had highlighted the importance of XBRL reporting. She reiterated that this would make surveillance easy and companies can be held accountable for the information they provide.

NSE has sought comments and feedback from market participants on the above circular.
Moneycontrol News
first published: Nov 24, 2022 04:30 pm