SEBI relaxes compliance of certain provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 due to the COVID-19 virus pandemic
Considering the COVID-19 pandemic, SEBI vide Circular dated March 19, 2020 has decided to grant temporary relaxations from certain compliance stipulations specified under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘LODR’) to listed entities w.r.t. the quarter / financial year ending March 31, 2020:
The COVID-19 virus has hit populations around the world and has restricted free movement of people, thereby hampering businesses and day to day functioning of companies. It has been declared a ‘pandemic’ by the World Health Organization (WHO). Developments arising due to the spread of the virus have warranted the need for temporary relaxations in compliance requirements for listed entities.
After a slew of relaxations announced on March 19 for listed companies, the market regulator on March 26 gave further relaxation from compliance with certain provisions of the Listing Obligations and Disclosure Requirements (LODR).
1. Filings
2. Conduct of Committee meetings – Nomination and Remuneration Committee, Stakeholders Relationship Committee and Risk Management Committee
The markets regulator Securities and Exchange Board of India said, for FY19-20, the top 100 companies by market capitalization are allowed to hold their annual general meetings (AGM) in September 2020 instead of August earlier, an extension of one month.
As per the Regulations 19(3A), 20(3A) and 21(3A), the nomination and remuneration committee, stakeholders relationship committee, and risk management committee of a company, respectively, have to meet at least once in a year separately. The due date for the above meetings is March 31, 2020, but now SEBI said these meetings can be held by the end of June 30, 2020, giving an extension of three months.
On a regular basis, companies have to get a certificate from a Practicing Company Secretary on the timely issue of share certificates twice in a year i.e. by October-end and April-end. Now SEBI has extended the same by one month to May 31, 2020, from April 30, 2020 earlier.
