Sometime in 2007-8 the BSE decided to use something called corpfiling to get the information from the public. This replaced the earlier method of collecting information.

When a company conducts a board meeting or discusses its quarterly results…it is necessary to tell the stock exchanges and the regulator what was the outcome of the meeting. Normally companies make minutes of the meeting and fax it to the stock exchanges.

Now if you are a small company and many results have been announced there is a good chance that your results will get lost or delayed. What does an investor expect from the regulators or the exchange when he is buying direct equity shares?

1. Proper Timely information: as soon as a decision is arrived at (including decision to hold the Board Meeting for considering something) the information should be given IMMEDIATELY to all the constituents SIMULTANEOUSLY. Thus a guy holding 100 shares or an institution holding 1,000,000 shares BOTH should get the information concurrently.

2. Data should be accurate (authentic): Nobody should hide under excuses like ‘printing mistake’, ‘forgot to fax’ , or ‘totalling mistake’ and such clerical excuses.

3. Source should be authentic: Yes it should have been filed by the company – and a designated person should have sent it, after authenticating it by the CFO / Company secretary / Managing Director – so that nobody says ‘oh this was a mistake’ we did not send it!

4. It should be authenticated by the auditor: if you have your money working, it is worth auditing too na?

XBRL can ensure all this and more. It can ensure arithmetical accuracy (makes it easier for the auditor and speeds up his work).

Of course some basic intelligence and due diligence work may be necessary…but the regulator and the exchanges will be saved off a lot of embarassment. They could have avoided the ones like the Bodal episode…(did you say Bodal who?)..then read on..

http://www.livemint.com/2011/08/31214243/Bodal-episode-should-spur-Sebi.html