Latest Amendment on Relaxation of Due Dates- By MCA/SEBI due to CoVID-19- Series 562



Latest Amendment on Relaxation of Due Dates-              
By MCA/SEBI due to CoVID-19

Ministry of Corporate Affair relaxation

Board Meeting (Video Conferencing):

As per Section 173(2) Companies can hold Board Meeting through Audio/Visual means. However as per rule 4 following transactions are restricted to transact through Video Conferencing:

a)      the approval of the annual financial statements;
b)     the approval of the Board’s report;
c)      the approval of the prospectus;
d)     the Audit Committee Meetings for 2[consideration of financial statement including consolidated financial statement if any, to be approved by the board under sub-section (1) of section 134 of the Act]; and
e)      the approval of the matter relating to amalgamation, merger, demerger, acquisition and takeover.

Latest Amendment/ Relaxation:
As per MCA relaxation dated 19th March, 2020 The Govt. has decided to relax the requirement of holding of Board Meeting with physical presence of directors u/s 173(2) rule 4 for approval of :
·         Financial Statement
·         Directors Report

May call video conferencing meeting till 30th June, 2020.
Therefore, till 30th June, 2020 Companies can call meeting through video conferencing for approval of financial statement, Board Report etc.

SEBI (LODR) 2015 - Relaxation

     A.   Relaxation in Due Dates:

SEBI has decided to grant the following relaxations from compliance stipulations specified under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘LODR’) to listed entities:

Sr. No.
Regulation and associated filing
                 Filing
Relaxation w.r.t the quarter/ financial year ending March 31, 2020


Frequency
Due within
Due date
Extended
Period of relaxation
1.
Regulation 7(3) relating to compliance certificate on share transfer facility
Half Yearly
One month of the end of each half of the financial year
April 30,2020
May 31,2020
1 Month
2.

Regulation 13(3) relating to statement of investor complaints
Quarterly

21 Days from the end of each quarter
April 21, 2020
May 15,2020
3 weeks (approx)
3.

Regulation 24A read with circular No CIR/CFD/CMD1/27/201
Yearly
60 days from the end of the Financial year
May 30,2020
June 30,2020
1 month
4.

Regulation 27(2) relating to Corporate Governance report
Quarterly
15 Days from the end of the quarter
April 15,2020
May 15,2020
1 month
5.

Regulation 31 relating to Shareholding Pattern
Quarterly
21 days from the end of the quarter
April 21,2020
May 15,2020
3 weeks (approx)
6.

Regulation 33 relating to Financial Results
Quarterly/ Annual
45 days from the end of the quarter for quarterly results
60 days from the end of the financial year for Annual Financial Results
15 May, 2020






May 30, 2020
June 30,2020






June 30,2020
45 days







1 month

B.     Relaxation of time gap between two board / Audit Committee meetings:

As per regulation 17(2) every listed company requires to hold at least 4 board meeting and Audit Committee meeting in a financial year. However after relaxation:

    The board of directors and Audit Committee of the listed entity are exempted from observing the maximum stipulated time gap between two meetings for the meetings held or proposed to be held between the period December 1, 2019 and June 30, 2020.

However the board of directors / Audit Committee shall ensure that they meet atleast four times a year, as stipulated under regulations 17(2) and 18(2)(a) of the LODR.


(Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at csdiveshgoyal@gmail.com).

Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, I assume no responsibility therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a professional advice and is subject to change without notice. I assume no responsibility for the consequences of use of such information. IN NO EVENT SHALL I SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM, ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE INFORMATION

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