Statement on utilisation of funds - Clause 43 of the Listing Agreement
Summary
SEBI mandates that companies must now submit statements on the utilization of public funds to stock exchanges on a quarterly basis. This requirement supersedes previous half-yearly disclosure obligations under Clause 43 of the Listing Agreement. Stock Exchanges are instructed to immediately amend their listing agreements to reflect this change and inform SEBI.
Text
In terms of our circular nos. SMD/SED/N/JJ/4984/94 dated September 23, 1994 and SMD/Policy/Cir-12 dated April 07, 1998 it was provided by Clause 43 of the listing agreement that the companies which mobilise funds from the public through public/rights issues would provide to the Stock Exchanges and publish a statement showing the variations between the projected utilisation of the fund and/or projected profitability statement made by it in its prospectus or letter of offer and the actual utilisation of funds and/or actual profitability on an half yearly basis.
In order to enhance the continual disclosure standards it has now been decided that the statements required to be provided vide Clause 43 would now be on a quarterly basis. It should be published along with the un-audited/audited financial results as required under Clause 41.
Accordingly, you are advised to amend the listing agreement of the exchange immediately and intimate the same to SEBI.
Source: SecMarx — Statement on utilisation of funds - Clause 43 of the Listing Agreement. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.