Listed Entities To Make Disclosure About Initiation Of Forensic Audit: SEBI
The disclosure need to be made without any application of materiality, SEBI said.
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In order to address the gaps in availability of information, The Securities and Exchange Board of India on Tuesday decided that listed entities will have to make disclosures about initiation of forensic audit.
To boost repo trading in corporate bonds, SEBI’s board also approved the proposal to facilitate setting up of a limited purpose repo clearing corporation.
The listed entities will make disclosures about the fact of initiation of forensic audit along-with name of entity initiating such audit and reasons for the same if available to stock exchanges, SEBI said in a statement after the board meeting.
Further, the companies will be required to disclose about final forensic audit report, other than for forensic audit initiated by regulatory or enforcement agencies, on receipt by the listed entity, along with comments of the management, if any.
The disclosure needs to be made without any application of materiality, SEBI said.