Cart leading the horse
Recently the SEBI chief was quoted saying that exempting companies from declaring 1QFY21 results by allowing them to combine 1QFY21 and 2QFY21 will be detrimental to the interest of investors. He reportedly said that "Without companies declaring their results for a quarter, investors, financial analysts and media might make their own estimates about companies' earnings, which could be less reliable and speculative". If this is really the thought process of regulator than it must be a cause of worry for all, especially investors. A regulator laying so much emphasis on quarterly earnings of companies highlights the adhoc nature of our regulatory framework for the market. It is pertinent to note that financial analysts and media do make their own estimates much before companies declare their results. The companies' performance is widely reported and evaluated by analysts and media in comparison to these estimates. The tone of the reporting is always th...