In view of the situation emerging out of the outbreak of COVID-19, which requires adherence of social distancing norms, the stakeholders have pointed about various difficulties MCA after considering this fact granted certain relaxation few of them are briefed as under.
Clarification on holding of annual general meeting (AGM) through video conferencing (VC) or other audio visual means (OAVM)
Further clarification on holding of annual general meeting through video conferencing or other audio visual means as follow http://www.mca.gov.in/Ministry/pdf/Circular20_05052020.pdf
[Source: MCA General Circular No.20/2020 dated 5th may 2020]
Revision of CRA-4
“Revision of Form CRA-4 available on MCA21 Company Forms Download page w.e.f 9th May, 2020.”
[Source: MCA website]
Clarification on dispatch of notice under section 62(2) of companies act, 2013 by listed companies for right issue opening upto 31st july ,2020
In view of current situation due to COVID-19 MCA clarification after considering SEBI circular (number SEBI/HO/CFD/DIL2/CIR/P/2020/78) as follow http://www.mca.gov.in/Ministry/pdf/Circular21_11052020.pdf
[Source: MCA General Circular No.21/2020 dated 11th may 2020]
Period/days of extension for names reserved and resubmission of forms
Extension of period/day for reserving names and resubmission of forms as follow http://www.mca.gov.in/Ministry/pdf/Extension_22042020.pdf
[Source: MCA website notice]
Relaxation introduced by SEBI
In view of the impact of the COVID-19 pandemic and the lockdown measures undertaken by Central and State Governments, based on representations, SEBI has decided to grant the following one time relaxations from strict enforcement of certain regulations of SEBI.
Relaxations relating to procedural matters Issues and Listing
In view of the impact of the COVID-19 pandemic SEBI has decided to grant the following one time relaxations from strict enforcement of certain regulations of SEBI related to issue and listing as follows: https://www.sebi.gov.in/legal/circulars/may-2020/relaxations-relating-to-procedural-matters-issues-and-listing_46652.html
[Source: SEBI Circular No.: SEBI/HO/CFD/DIL2/CIR/P/2020/78 dated 06th may 2020]
Additional relaxations due to COVID-19 pandemic
SEBI has provided some additional relaxations due to Covid-19 pandemic which includes:
For the AGM during the calendar year 2020:
- No requirement of sending physical copies of the annual report to the stakeholders
- No requirement of Proxy appointment for electronic meetings
- Subject to prescribed conditions, dividend warrants/cheques may be sent upon normalization of postal services.
- Publication of newspaper advertisement- publications required under regulation 47 exempted till June 30, 2020
Quarterly financial results by banking/insurance companies or other companies having subsidiaries which are banking/insurance companies-may submit consolidated financial results, on a voluntary basis till June 30, 2020. However, standalone results are to be provided in the usual manner and if only standalone financial results are being provided, reasons for the same are to be given.
[Source: SEBI Circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/79 dated May 12, 2020]
Relaxations relating to procedural matters – Takeovers & Buy-back
The relaxations provided are as follows:
- Subject to certain conditions, Service of the letter of offer and/or tender form and other offer related material to shareholders may be undertaken by electronic transmission
- Inspection of material documents to be provided electronically
- As far as possible, attempts will be made to adhere to the existing prescribed framework
[Source: SEBI circular No. SEBI/CIR/CFD/DCR1/CIR/P/2020/83 dated May 14, 2020]
Relaxation in timelines for compliance with regulatory requirements
In view of the situation arising due to COVID-19 pandemic certain relaxation in timelines for compliance with regulatory requirements as follow: https://www.sebi.gov.in/legal/circulars/may-2020/relaxation-in-timelines-for-compliance-with-regulatory-requirements_46674.html
[Source: SEBI Circular No.: SEBI/HO/MIRSD/DOP/CIR/P/2020/82dated 15th may 2020]
Advisory on disclosure of material impact of COVID–19 pandemic on listed entities under SEBI (LODR) Regulations, 2015
disclosure of material impact of CoVID–19 pandemic on listed entities under SEBI (listing obligations and disclosure requirements ) Regulations, 2015 as follow: https://www.sebi.gov.in/legal/circulars/may-2020/advisory-on-disclosure-of-material-impact-of-covid-19-pandemic-on-listed-entities-under-sebi-listing-obligations-and-disclosure-requirements-regulations-2015_46688.html
[Source: SEBI Circular No.: SEBI/HO/CFD/CMD1/CIR/P/2020/84 dated 20th may 2020]
Relaxation in eligibility criteria for listing on BSE SME platform
Due to Covid-19 pandemic situation, BSE has relaxed the criteria for the Companies for listing on the BSE SME platform as Net tangible asset revised from Rs. 3 Crore to Rs. 1.5 Crore and the Company should have positive cash accruals in any of the years out of the last 3 years. There is no relaxation for the NBFC and Broking Companies for listing on BSE SME platform.
[Source: BSE Circular dated May 22, 2020]