Amid the COVID-19 outbreak, the Securities and Exchange Board of India (SEBI) may not let corporates waive disclosure of the current quarter's results.
Industry bodies - the Confederation of Indian Industry (CII) and the Federation of Indian Chambers of Commerce and Industry (FICCI) - earlier asked SEBI to ease the disclosure rules, the Business Standard reported.
Moneycontrol could not independently verify the story.
A SEBI spokesperson told the Business Standard that the market regulator was "yet to take a view on the matter".
SEBI said no important regulator across the globe had offered such waivers, the report said.
Frequently Asked Questions
A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.
There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.
Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.
"It is tricky both practically and theoretically, as stocks would trade without key financial disclosures for almost two quarters. This could lead to unnecessary volatility and speculation," a source told the publication.
CII said companies would anyway submit half-yearly results at the end of the September quarter while FICCI said companies should be permitted to release the Q1 results along with the Q2 results.Existing rules require companies to declare their results within 45 days after a quarter ends. The first quarter of 2020-21 ends on June 30.