MCA and SEBI seek an essential service status for auditors of listed companies

Listed companies are required to disclose their audited annual financial statements within 60 days of the end of financial year, i.e. by May 31. However, SEBI has extended the deadline for financial results of listed companies for FY2019-20 to June 30, 2020 due to the COVID-19 outbreak. However, the auditors of listed companies are not in a position to visit sites physical verifications and interactions with the management of the companies whose financial results are audited. This would take time and effort. Therefore, in order to deal with such matter, the market regulator, SEBI has written to the Ministry of Corporate Affairs to take up the matter of permitting auditors of listed companies to operate from April 20, 2020 with the Ministry of Home Affairs.