SEBI Further relaxes compliance with Listing Regulations (LODR) due to CoVID -19

SEBI Further relaxes compliance with Listing Regulations (LODR) due to CoVID -19
Securities and Exchange Board of India
 
CIRCULAR
 
SEBI/HO/CFD/CMD1/CIR/P/2020/63
 
April 17, 2020
 
To
All listed entities
All Recognized Stock Exchanges
Madam / Sir,
 

Subject: Additional relaxations / clarifications in relation to compliance with certain provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘LODR’) due to the COVID-19 pandemic

 
1. SEBI, vide Circular no. SEBI/HO/CFD/CMD1/CIR/P/2020/38 dated March 19, 2020 and SEBI/HO/CFD/CMD1/CIR/P/2020/48 dated March 26, 2020 had provided relaxations from compliance with certain provisions of the LODR and circulars issued thereunder. It has been decided to grant the following further relaxations/issue clarifications regarding provisions of the LODR in the face of challenges faced by listed entities due to the COVID-19 pandemic
:
 

A. Prior intimation to stock exchanges about meetings of the board:

Regulation 29 (2) of LODR specifies that stock exchanges need to be  provided prior intimation about meetings of the board (excluding the date of the intimation and date of the meeting) as follows:
 
  • at least 5 days before the meeting if financial result s are to be considered;
  • 2 working days in other cases.
It has been decided that the above requirement under Regulation 29 (2) of LODR of prior intimation of 5 days / 2 working days shall be reduced to 2 days, for board meetings held till July 31, 2020.
 

B. Intimation to Stock Exchanges regarding loss of share certificates and issue of the duplicate certificates:

Regulation 39 (3) of LODR requires listed entities to submit information regarding loss of share certificates and issue of the duplicate certificates, to the stock exchange within two days of its getting information. It has been decided that any delay beyond the stipulated time will not attract penal provisions laid down vide SEBI circular no. SEBI/HO/CFD/CMD/CIR/P/2018/77 dated May 3, 2018 . This relaxation is for intimations to be made between March 1, 2020 to May 31, 2020.
 

C. Clarification regarding the use of digital signatures:

It is hereby clarified that authentication / certification of any filing / submission made to stock exchanges under LODR may be done using digital signature certifications until June 30, 2020.
 
2. SEBI, vide circular no. SEBI/HO/CFD/CMD1/CIR/P/2020/48 dated March 26, 2020 had relaxed the requirements relating to publication of  advertisements in newspapers as required under Regulation 47 of LODR Regulations till May 15, 2020. A similar requirement that exists in regulation 52(8) and applies to entities which have listed their NCDs and NCRPS as required under Regulation 52(8) of LODR Regulations is also exempt till May 15, 2020.
 
3. This Circular shall come into force with immediate effect. The Stock Exchanges are advised to bring the provisions of this circular to the notice of all listed entities and also disseminate the content on their websites.
 
4. The Circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with regulations 101 and 102 of the LODR and the relaxations contained herein are subject to the provisions of the Companies Act, 2013 and rules made thereunder.
 
5. This Circular is available at www.sebi.gov.in under the link “Legal >Circulars
 
Pradeep Ramakrishnan
General Manager
Corporation
Finance Department
Compliance and Monitoring Division-1
+91-22-26449246
pradeepr@sebi.gov.in
 
Note:
Earlier. SEBI had second time relaxed the compliance with provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR) and the SEBI circular relating to SOP due to the CoVID -19 virus pandemic

Securities and Exchange Board of India

CIRCULAR

SEBI/HO/CFD/CMD1/CIR/P/2020/48

March 26, 2020

To,
All listed entities that have listed their specified securities
All Recognized Stock Exchanges
All Depositories

Madam / Sir,

Sub: Further relaxations from compliance with certain provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR) and the SEBI circular dated January 22, 2020 relating to Standard Operating Procedure due to the CoVID -19 virus pandemic

1. SEBI, vide circular no SEBI/HO/CFD/CMD1/CIR/P/2020/38 dated March 19, 2020 had provided relaxation from compliance with certain provisions of the LODR. It has been decided to grant the following further relaxations from the LODR:

A. Filings:

Sl no. Regulation and associated filing Filing Relaxation w.r.t. the quarter / half year / year ending March 31, 2020
Frequency Due within Due date Extended date Period of relaxation
a. Regulation 40(9) relating to Certificate from Practicing Company Secretary on timely issue of share certificates Half Yearly 1 month of the end of each half of the financial year April 30, 2020 May 31, 2020 1 month
b. Regulation 44(5) relating to holding of AGM by top 100 listed entities by market capitalization for FY 19-20 Annual Within a period of 5 months from the date of closing of the financial year August 31, 2020 September 30, 2020 1 month

B. Conduct of Committee meetings – Nomination and Remuneration Committee, Stakeholders Relationship Committee and Risk Management Committee

Sl no. Regulation Requirement Frequency Due date Extended date Period of relaxation
a. Regulation 19(3A) The nomination and remuneration committee shall meet at least once in a year Yearly March 31, 2020 March 31, 2020 3 months
b. Regulation 20(3A) The Stakeholders Relationship committee shall meet at least once in a year
c. Regulation 21(3A) The Risk Management Committee shall meet at least once in a year.

C. Relaxation of the operation of the SEBI circular on Standard Operating Procedure dated January 22, 2020

SEBI vide circular no. SEBI/HO/CFD/CMD/CIR/P/2020/12 dated January 22, 2020 issued the Standard Operating Procedure (SoP) on imposition of fines and other enforcement actions for non-compliances with provisions of the LODR, the effective date of operation of which is for compliance periods ending on or after March 31, 2020. The said circular dated January 22, 2020 shall now come into force with effect from compliance periods ending on or after June 30, 2020. It may be noted that the SoP circular dated May 03, 2018 would be applicable till such date.

D. Publication of advertisements in the newspapers:

Regulation 47 of the LODR requires publishing, in the newspapers, information such as notice of the board meeting, financial results etc. It has been brought to the notice of SEBI that some newspapers are not bringing their print versions for a limited period; some newspapers that are still printing are not accepting a ‘e-copy’ of the information to be published which acts as a challenge in ensuring compliance with this regulation. Hence it has been decided to exempt publication of advertisements in newspapers as required under regulation 47 for all events scheduled till May 15, 2020.

2. This Circular shall come into force with immediate effect. The Stock Exchanges are advised to bring the provisions of this circular to the notice of all listed entities that have issued specified securities and their material subsidiaries and also disseminate on their websites.

3. The Circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with regulations 101 and 102 of the LODR and the relaxations contained herein are subject to the provisions of the Companies Act, 2013 and rules made thereunder.

4. The circular is available on SEBI website at www.sebi.gov.in under the category – ‘Legal – Circulars’.

Pradeep Ramakrishnan
General Manager
Compliance and Monitoring Division-1
Corporation Finance Department
+91-22-26449246

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