The companies listed on the stock markets are required to submit compliance reports periodically to the stock exchanges in the time frame set by the market regulator SEBI. The filing of these compliance reports is done on the distinct and customized electronic platform provided by the stock exchanges. The listed companies are required to submit separate compliance reports in each stock exchange they are listed in. the format and the structure related reports vary for different stock exchanges. Also, the companies need to file a separate compliance report with the Ministry of Corporate Affairs in XBRL format also termed as XBRL filing. This results in unnecessary efforts as a company gas to file the same data in a different format on various platforms. The issue could be resolved if even the stock exchanges also followed the same XBRL filing format of the MCA.
This is because the NSE introduced a compliance filing system based on XBRL and has similar compliance data structures like MCA or other stock exchanges. By using this, the companies could easily use the XBRL compliance data generated in the other stock exchange’s format for XBRL filing in the NSE’s platform. Alternatively, the XBRL compliance data of the NSE could also be used on other compliance filing platforms.
XBRL (eXtensible Business Reporting Language) is a structured way of sharing business data through an electronic platform. The various definition tags of this language uniquely represent the data of each part of financial statements. The structured element of the data enables the movement of reporting information across the organization efficiently. This mode of information sharing is rapid, reliable, and accurate.
There are two parts of the XBRL filing information- Instance document and taxonomy. The taxonomy of an XBRL document defines the elements of the data and their relationships based on the regulatory requirements of the platform. The taxonomy also enables the companies to map their rep[orats and generate the valid XBRL instance documents. The instance document also includes information like period of data, unit of measurement, the scale of reporting, etc.
XBRL mode of filing leads to efficiency and accuracy that enhances reliability to all those involved in the process of providing financial and business data or using the data. XBRL also increases the usability of business statement information as the need to reenter the financial data for analytical or other purposes is eliminated. By presenting its statements in the XBRL system, a company can benefit its investors and other stakeholders.
The Exchange has provided an online electronic platform named NEAPS (NSE Electronic Application Processing System) where listed companies of the stock exchange are required to submit all data related to compliance disclosures. The data is submitted in the prescribed format of the SEBI. To facilitate ease of compliance filings for listed companies across multiple Stock Exchanges, NSE has decided to provide XBRL based compliance reporting that features identical and homogeneous compliance data structures similar to that of other Stock Exchanges and MCA. This facility has been provided to give additional flexibility for companies filing compliance reports in the following ways:
Data entry/file upload: Presently, the listed companies submit their compliance reports through the NEAPS system using the data entry/file upload options on the platform. Following the same procedure, the companies shall submit the compliance reports through the same module as before. However, the information submitted by companies will automatically be converted into XBRL format through a utility of the NEAPS system. Post submission like this, listed companies can download the files for further use.
XBRL file upload: Listed Company can upload XBRL files generated using their back-office/through a utility provided by other Stock exchanges in the NEAPS system.
The filing facility will be available as per the schedule mentioned below:
|SR.NO.||REPORTING MODULES||TAXONOMY||OPTIONS AVAILABLE TO COMPANIES TO SUBMIT THE COMPLIANCE REPORTS IN XBRL|
|1.||Corporate Governance||Common taxonomy between NSE and BSE. Adapted from BSE||Option – 1:|
Option – 2:
|3.||Reconciliation of Share Capital Audit|
There are many benefits associated with XBRL reporting like increased speed, accuracy, and efficiency in filing.
The increase in speed and efficiency at which reporting is conducted by the company has led to the Government prefer this filing system.
More than 160 member countries are currently utilising the system related to XBRL filing.