COVID-19: SEBI Eases Compliance Requirements For Companies

The Securities and Exchanges Board of India (SEBI).

(Photo: The Quint)

Easing compliance requirements amid coronavirus outbreak, regulator SEBI on Thursday, 19 March, gave a 45-day relaxation for companies to file their fourth quarter results as well as an additional one-month time to submit their annual results.

Companies have been provided one-month relaxation till 15 May for filing their quarterly governance reports. The market watchdog has also relaxed the time-gap required between two board meetings of a company.

"Development arising due to the spread of the virus warrant the need for temporary relaxation in compliance requirement of listed entities," SEBI said in a circular.

With respect to quarterly financial results, companies have been given 45 days till 30 June 2020 to file their March quarter results.

Under the rules, firms are required to file their financial results within 45 days from the end of a quarter. As per that time frame, the deadline is 15 May. In the case of submitting results for the year ending 31 March, it has extended the time till 30 June.

Normally, listed companies are required to file their annual results within 60 days from the end of a financial year.

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

SEBI

However, the board of directors and audit committees would have to ensure that they meet at least four times a year as stipulated under listing regulations.

As per the norms, board of directors or audit committee need to meet at least four times a year, with a maximum gap of 128 days between any two meetings.

Among others, the deadline has been extended by three weeks till 15 May for submission of quarterly shareholding pattern and statement of investor complaint report.

In addition, a relaxation of one month has been given with regard to filing of half-yearly compliance certificate on share transfer facility and yearly secretarial compliance report.

Companies can file compliance certificate on share transfer facility till 31 May and secretarial compliance report by 30 June.

These decisions have been taken in the wake of coronavirus pandemic, which has also resulted in imposition of certain restrictions, including those related to travel.

The circular would be in force with immediate effect.