Further relaxation in compliance given by SEBI for Listed firms due to COVID-19

1) The markets regulator, the Securities Exchange Board of India (SEBI), on Thursday, issued circular relaxing compliance norms for the listed firms to help them cope with curbs imposed by the government to contain the spread of the COVID-19 pandemic.

2) The Board had eased the deadline for publicly traded companies to file their earnings reports. The circular in the name of General Manager Compliance and Monitoring Division-1 Corporation Finance Department, Pradeep Ramakrishnan, addresses all the all listed entities that have listed their specified securities, all Recognized Stock Exchanges and All Depositories provided further relaxations from compliance norms with certain provisions of the SEBI due to the COVID -19 virus pandemic as given below-

a) Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR) and

b) SEBI circular dated January 22, 2020, relating to Standard Operating Procedure.

3) In the circular, SEBI said it has decided to grant relaxation to listed entities from compliance with certain provisions of the Listing Obligations and Disclosure Requirements Regulations, 2015 (LODR). With regard to regulations and associated filings pertaining to Regulation 40(9) relating to Certificate from Practicing Company Secretary on the timely issue of share certificates which is supposed to be submitted on April 30, 2020, SEBI has granted an extension of 30 days till May 31, 2020.

4) In the case of Regulation 44(5) relating to holding of AGM by top 100 listed entities by market capitalization for Financial Year 2019-20, which is supposed to be held on August 31, 2020, SEBI has granted an extension of 30 days till September 30, 2020.

5) With regard to the Conduct of Committee Meetings i.e. Nomination and Remuneration Committee, Stakeholders Relationship Committee and Risk Management Committee the due date was March 31, 2020, however, SEBI has granted an extension of 3 months till June 30, 2020.

6) The circular would be a great relief to the companies as it removes so many restrictions, including free movement of people, thereby hampering businesses and day-to-day functioning of the companies.

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