Statement of Deviation & Monitoring Agency Report

A statement of deviation is a quarterly filing in which a company reports how it has used money raised through a public issue, rights issue, preferential issue or QIP, and whether that use differs from what it told investors. A monitoring agency report is an independent agency's review of the same question for larger issues.

The statement is required by SEBI's LODR Regulation 32 and is reviewed by the audit committee. SEBI's issue regulations require a credit rating agency to act as monitoring agency for larger issues (above ₹100 crore), and its quarterly report is filed with the exchanges as well.

Most filings report no deviation. For example, Adani Enterprises' statement for the quarter ended 30 June 2026 reported no deviation in the use of its rights-issue proceeds, and the monitoring agency report filed alongside it, prepared by CARE Ratings, set out how the money had been spent.

A deviation is not automatically bad — plans change — but money raised for expansion that is quietly redirected to repaying promoter-group loans, or that sits unused for long periods, is worth questioning. Changes of stated purpose need shareholder approval.

How stocks tend to react

Clean statements do not move prices. A reported deviation, or a monitoring agency flagging a shortfall or delay, can weigh on the stock because it touches the credibility of management's capital plans.

MarketPing measures this instead of guessing: every analysed announcement carries the stock's actual price reaction across 14 horizons, and the Reaction Lab aggregates how each category of announcement has historically moved stocks.

Related terms

Educational content, not investment advice. Regulations and tax rules change — verify current rules before acting.