Listed firms will have to file IPO-like document annually

All listed companies might soon have to prepare an annual information memorandum (AIM), a public document with all relevant information about their financial and operating performance.

In a discussion paper released on Tuesday, the Securities and Exchange Board of India (Sebi) has prescribed that all listed companies prepare an annual document where “all relevant information” is available at one place.

In the AIM, companies will have to disclose information on their management, promoters, principal shareholders, financial statements and utilisation of funds raise. The document will be similar to offer document filed by companies before coming out with an Initial Public Offering (IPO).

“The objective of AIM is to provide shareholders and prospective shareholders with accurate and relevant information about the financial and operating performance of the company. AIM would be comprehensive in nature and will provide investors with detailed information at one place about the company, thereby assisting in making of informed investment decisions,” Sebi said in the paper.

Currently, all listed companies do make available such information through stock exchange disclosures and annual reports, however, it is fragmented and in multiple places.

The regulator has set an implementation timeline of financial year 2014-15 for the top 200 companies and 2015-16 for all others.