Analysis of SEBI Relaxations due to Lockdown 2.0

SEBI has decided to grant the following further relaxations / issue clarifications regarding provisions of the LODR in the face of challenges faced by listed entities due to the COVID-19 pandemic

Analysis of SEBI Relaxations due to Lockdown 2.0

  • Relaxation given under:

  • Under SEBI Circular dated 16.04.2020
    • Regulation 74 (5) of SEBI (Depositories & Participants) Regulations, 2018.
    • Regulation 74 (4) of SEBI (Depositories & Participants) Regulations, 2018
    • SEBI circular no. MIRSD/Cir26/2011 dated December 23, 2011.
  • Under SEBI Circular dated 17.04.2020
  • Regulation 29 (2) of LODR Regulations, 2015
  • Regulation 39 (3) of LODR Regulations, 2015
  • Regulation 47 of LODR Regulations., 2015
  • Regulation 52(8) of LODR Regulations, 2015
  • Clarification regarding the use of digital signatures, 2015
  • I. SEBI Circular dated 16.04.2020

Securities and Exchange Board of India (SEBI) vide notification / Circular No. SEBI/HO/MIRSD/DOP/CIR/P/2020/62  issued and publish dated 16th April, 2020, has published Relaxation in time period for certain activities carried out by depository participants, RTAs / issuers, KRAs, stock brokers” in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 and Section 19 of the Depositories Act.

 Relaxation in compliance with the time period for the following activities carried out by the depository participants, stock brokers, share transfer agent / issuer, it has been decided to provide the relaxation as under:

­­

Sl. No.

Requirements

Existing timeline

Period of

exclusion

Reference SEBI Regulation /

Circular

1

Processing of the demat request form by Issuer / RTA.

15 days

From March 23, 2020 till May 17, 2020

Regulation 74 (5) of SEBI (Depositories & Participants) Regulations, 2018.

 

2

Processing of the demat request form by the Participants.

7 days

Regulation 74 (4) of SEBI (Depositories & Participants) Regulations, 2018

 

3

KYC application form and supporting documents of the clients to be uploaded on system of KRA within 10 working days.

10 days

SEBI circular no. MIRSD/Cir26/2011 dated December 23, 2011.

 

Kindly note that:

  • The period beginning from March 23, 2020 till May 17, 2020 shall be excluded for computing the existing timelines specified in Regulation 74 (4) and 74 (5) of SEBI (Depositories & Participants) Regulations, 1996 and the aforementioned circular dated December 23, 2011.
  • Further, a 15-day time period after May 17, 2020 is allowed to the SEBI registered intermediary, to clear the back log.

Source:

https://www.sebi.gov.in/legal/circulars/apr-2020/relaxation-in-time-period-for-certain-activities-carried-out-by-depository-participants-rtas-issuers-kras-stock-brokers_46524.html

 

II. SEBI Circular dated 16.04.2020

Securities and Exchange Board of India (SEBI) vide notification / Circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/63 issued and publish dated 17th April, 2020, has published Additional relaxations / clarifications in relation to compliance with certain provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘LODR’) due to the COVID – 19 pandemic”

SEBI has decided to grant the following further relaxations / issue clarifications regarding provisions of the LODR in the face of challenges faced by listed entities due to the COVID-19 pandemic:

 

Regulations

Compliance Particulars

Standard Timeline

Extension / Relaxations

Regulation 29 (2) of LODR Regulations

 

Prior intimation to stock exchanges about meetings of the board:

· at least 5 days before the meeting if financial results are to be considered;

 

· 2 working days in other cases.

prior intimation of 5 days / 2 working days shall be reduced to 2 days, for board meetings held till July 31, 2020.

Regulation 39 (3) of LODR Regulations

 

Intimation to Stock Exchanges regarding loss of share certificates and issue of the duplicate certificates:

within two days of its getting information.

any delay beyond the stipulated time will not attract penal provisions laid down vide SEBI circular no. SEBI/HO/CFD/CMD/CIR/P/2018/77 dated May 3, 2018. This relaxation is for intimations to be made between March 1, 2020 to May 31, 2020.

Regulation 47 of LODR Regulations.

 

Publication of advertisements in newspapers

Notice of Meeting and Financial Results as per SEBI LODR Regulations

exempt till May 15, 2020

Regulation 52(8) of LODR Regulations

Publication of advertisements in newspapers

Listing of their NCDs and NCRPS

exempt till May 15, 2020

 

  • Clarification regarding the use of digital signatures:

It is hereby clarified that authentication / certification of any filing / submission made to stock exchanges under LODR may be done using digital signature certifications until June 30, 2020.

Source:

https://www.sebi.gov.in/web/?file=https://www.sebi.gov.in/sebi_data/attachdocs/apr-2020/1587109438485.pdf#page=1&zoom=page-width,-16,792

 

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