Unlisted companies having listed subsidiaries face greater oversight

May be asked for regular financial results

Companies such as Tata Sons and Bharti Telecom, which are unlisted but have listed subsidiaries, may soon have to file periodic financial statements with the registrar of companies under the new provision of the Companies Act.

The provision requires greater financial disclosures by a certain category of unlisted companies.

“While disclosures are made by listed companies regularly, their holding firms only provide annual financial statements, with an 18-month gap at that. We want to address this information asymmetry,” a senior government official told Business Standard.

The ministry is also considering that the criteria to define this class should be based