NSE’s Transition to XBRL-Based Compliance Filing

The National Stock Exchange (NSE) is introducing an XBRL-based compliance filing mechanism, aiming to streamline reporting for listed companies. This new system seeks to unify compliance filings between the NSE, other stock exchanges, and the Ministry of Corporate Affairs (MCA), reducing redundancy and enhancing efficiency.

Compliance Filings and XBRL Implementation

Current State: Listed companies must submit periodical compliance information separately to each stock exchange and the MCA, which leads to duplication as each exchange has its unique format and structure.
Transition to XBRL: To address this issue, the NSE is introducing an XBRL-based compliance filing mechanism, featuring standardized structures for filings across stock exchanges and the MCA.
Cross-Platform Use: The new system allows listed companies to generate XBRL-compliant reports that can be uploaded to other stock exchanges, reducing repetitive filings.

Understanding XBRL

What is XBRL: The eXtensible Business Reporting Language (XBRL) is a standardized way of presenting business and financial data electronically. It provides a language of definitions (tags) that uniquely identify the contents of financial statements and compliance reports.
Taxonomy and Instance Document: XBRL makes data readable through a taxonomy that defines elements and their relationships based on regulatory requirements. Companies can map reports to this taxonomy, generating an XBRL instance document, which also includes units of measurement, data periods, and reporting scales.
Benefits: XBRL enhances reporting efficiency and accuracy, making financial data more reliable for companies and stakeholders. It eliminates the need for re-keying data, facilitating better use of information.

NSE’s NEAPS System

NEAPS Overview: The NSE’s NEAPS (NSE Electronic Application Processing System) provides an online platform for listed companies to submit all compliance disclosures in SEBI-prescribed formats.
XBRL Filing Options:
- Data Entry/File Upload: Companies can continue to use the NEAPS system to enter data directly or upload files. This information is then automatically converted to XBRL format.
- XBRL File Upload: Companies can also directly upload XBRL files generated from their back-office systems or from utilities provided by other stock exchanges.

The NSE’s introduction of an XBRL-based compliance filing mechanism streamlines reporting for listed companies, aligning their disclosures with other stock exchanges and the MCA. The new system leverages the NEAPS platform, offering multiple filing options, reducing redundancy, and enhancing efficiency for financial and compliance reporting.

Amendment in Filing of Voting Results To Stock Exchanges

A circular from the National Stock Exchange of India (NSE) dated October 17, 2023, mandates that voting results be filed in XBRL format. This major development’s goal, affecting all listed firms, is to standardise and streamline the reporting process to comply with the 2015 SEBI (Listing Obligations and Disclosure Requirements) Regulations.

Entities submitted voting results in both PDF and XBRL reporting format previously. The NSE has decided to stop using the PDF reporting format for voting results to improve compliance and streamline the reporting procedure.

Let us explore the amendment in the filing of voting results to stock exchanges.

Analysis of the Amendments

The circular refers to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, namely Regulation 44(3), which mandates that listed businesses report their Voting Results no later than two working days after the end of their General Meeting. To improve compliance and streamline the reporting procedure, the NSE will no longer accept voting results in PDF reporting format. Listed firms will only be allowed to make Voting Result disclosures in XBRL format as of November 1, 2023.

It is strongly advised that listed entities become aware of this modification and follow the revised specification. The NSE’s compliance portal, NEAPS, provides access to the required XBRL format for submitting voting results. The XBRL voting results filing process aims to increase reporting accuracy, efficiency, and uniformity.

Mandatory Filing of Voting Results in XBRL Format

Below are some mandatory filing requirements to make compliance easier for the listed firms.

The following route will provide you with the required XBRL format to file the voting results: Voting Result > Event Based Compliances > NEAPS> Compliance.
The following path requires the listed entities to submit voting result disclosure solely in XBRL format: Navigation: NEAPS > Compliance > Shared XBRL Upload > Results of Voting.

It is important to remember that all listed organisations must file the voting results using the XBRL mode. Furthermore, under Regulation 44(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, only the submission of voting results in the XBRL form will be deemed compliant; filings in any other format, including PDF form, will not be accepted.

NSE Circular Ref. No.: NSE/CML/2023/74

NSE XBRL Filing Facility: Availability and Options

The NSE has provided a new XBRL-based filing facility, which is available as follows:

Corporate Governance

Taxonomy: The taxonomy used for this module is a common taxonomy between NSE and BSE, adapted from BSE.
Filing Options:
- Option 1: Companies can use the NEAPS system to enter data directly or upload files, generating an XBRL file.
- Option 2: Companies can upload an XBRL file generated by utilities provided by other stock exchanges directly into the NEAPS system.
Investor Access: Under both options, the filings can be downloaded from the NSE website in XBRL format, facilitating access for investors.

Shareholding Pattern

Taxonomy: This module uses a standardized taxonomy to report the shareholding patterns of listed companies.
Filing Options:
- Companies can enter data directly or upload files through the NEAPS system, which then generates an XBRL file.
- Alternatively, companies can upload an XBRL file generated from their back-office systems or utilities provided by other stock exchanges.

Reconciliation of Share Capital Audit

Filing Process: Similar to the shareholding pattern module, this module also follows a standardized taxonomy for filing reports. The NEAPS system provides options for companies to either:

- Enter data directly or upload files, which are then converted to XBRL format.
- Upload an XBRL file generated by other stock exchanges or back-office systems.

Financial Results

- Taxonomy: This module follows a standardized taxonomy for reporting financial results.
- Filing Options:
  - Companies can enter data directly or upload files through NEAPS, generating an XBRL file.

- - Alternatively, they can upload an XBRL file generated by utilities provided by other stock exchanges.

How Can DataTracks Help in NSE XBRL Reporting?

Choose DataTracks to be your guide. Delegate your XBRL woes to DataTracks and get back to business. All you have to do is sign up and become a user. Once you have chosen your appropriate turnaround options and taxonomy, you have to perform the audit, pay and upload the completed financial statements to download the error-free, pre-validated XBRL output.

Doing so can save time, reduce risks, and produce error-free compliance reports. Complete your accounts and hand the rest off to our staff of IGAAP and Ind AS knowledgeable financial professionals. We ensure your XBRL report preparation goes smoothly. For any enquiries, email enquiry@datatracks.in or call us at +91 73050 74307.