“SEBI RELAXATION OF TIME GAP BETWEEN TWO BOARD / AUDIT COMMITTEE MEETINGS TILL 31ST JULY 2020”

 1,056 total views

“SEBI RELAXATION OF TIME GAP BETWEEN TWO BOARD / AUDIT COMMITTEE MEETINGS TILL 31ST JULY 2020”

Securities Exchange Board of India (SEBI) vide Notification No. SEBI/HO/CFD/CMD1/CIR/P/2020/110 dated 26thJune, 2020 has come out with Relaxation of time gap between two board / Audit Committee meetings of listedentities owing to the CoVID-19 pandemicin exercise of the powers conferred under Section 11(1) of theSecurities and Exchange Board of India Act, 1992 read with Regulation 101 of the LODRRegulations and is subject to the provisions of the Companies Act, 2013, rules made andcirculars issued thereunder

  • The Circular was issued to:

 

  1. All listed entities
  2. All Recognized Stock Exchanges

 

  • Previous Extension:

 

  1. Circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/38 dated March 19, 2020

Link: https://www.sebi.gov.in/legal/circulars/mar-2020/relaxation-from-compliance-with-certain-provisions-of-the-sebi-listing-obligations-and-disclosure-requirements-regulations-2015-due-to-the-covid-19-virus-pandemic_46360.html

SEBI has given Relaxation under regulations 17(2) and 18(2)(a) of the SEBI (LODR) Regulations, 2015:

 

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

In other words we can say that SEBI has relaxed only the provisions related to maximum time gap between two meetings.

 

This relaxation was provided for the meetings held/proposed tobe held between the period December 1, 2019 and June 30, 2020.

Further Relaxation from SEBI

SEBI has decided to:

1.extensionof maximum time gap between two board/Audit Committeemeetings as provided by circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/38 dated March 19,2020 is further extended till July 31, 2020..

 

Kindly note that:

 

The board of directors and auditcommittees of listed entities shall ensure that they meet atleast four times a year, asstipulated under Regulations 17(2) and 18(2)(a) of the LODR Regulations.

 

  • Applicability of this Circular: shall come into force with immediate effect.

 

Link of the Circular:

https://www.sebi.gov.in/legal/circulars/jun-2020/relaxation-of-time-gap-between-two-board-audit-committee-meetings-of-listed-entities-owing-to-the-covid-19-pandemic_46945.html

 

Disclaimer:

 

IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.

Leave a Comment

Your email address will not be published.

the taxtalk

online portal for tax news, update, judgment, article, circular, income tax, gst, notification Simplifying the tax and tax laws is the main motto of the team tax talk, solving