Due to Covid-19 pandemic, SEBI had provided relaxations to listed entities from compliance with certain provisions of the SEBI (listing Obligations and Disclosure requirements) Regulations 2015 (SEBI LODR).
Hence it has been decided by SEBI to grant the following relaxations:
A. Relaxations necessitating out of MCA circulars
- Requirement of sending physical copies of annual report to shareholders
The requirement of regulations 36(1)(b) and (c) and regulation 58 (1)(b) and (c) of the LODR are dispensed with for listed entities who conduct their AGMs during the calendar year 2020 (i.e. till December 31, 2020)
- Requirement of proxy general meeting
The requirement under regulation 44(4) of the LODR is dispensed with temporarily, in case of meetings held through electronic mode only. This relaxation is available for listed entities who conduct their AGMs through electronic mode during the calendar year 2020 i.e. till December 31, 2020.
- Requirement of dividend warrants/cheques
Regulation 12 of the LODR prescribes issuance of ‘payable at par’ warrants or cheques in case it is not possible to use electronic modes of payment. Further, in case the amount payable as dividend exceeds Rs.1500/-, the ‘payable-at-par’ warrants or cheques shall be sent by speed post. The requirements of this regulation will apply upon normalization of postal services. However, in cases where email addresses of shareholders are available, listed entities shall endeavour to obtain their bank account details and use the electronic modes of payment specified in Schedule I of the LODR.
B. Relaxation from publication of advertisements in the newspaper
- SEBI had exempted publication of advertisements in newspapers for all events scheduled till May 15, 2020 as some newspapers had stopped their print versions due to covid-19 pandemic. Now a similar requirement that exists in regulation 52(8) of the LODR Regulations and applies to entities which have listed their NCDs and NCRPS’ was also exempted till May 15, 2020.
- Hence all exemptions from publication of advertisements in newspapers are extended for all events scheduled till June30, 2020.
C. Relaxation from publishing quarterly consolidated financial results under regulation 33(3)(b) of the LODR for certain categories of listed entities:
- As per regulation 33(3) (b) of the LODR, in case a listed entity has subsidiaries, the listed entity shall submit quarterly/year-to-date consolidated financial results.
- Listed entities which are banking and / or insurance companies or having subsidiaries which are banking and / or insurance companies may submit consolidated financial results under regulation 33(3)(b) for the quarter ending June 30, 2020 on a voluntary basis. However, they shall continue to submit the standalone financial results as required under regulation 33(3)(a) of the LODR.
- If such listed entities choose to publish only standalone financial results and not consolidated financial results, they shall give reasons for the same.