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

SEBI Relaxation of time gap between two board / Audit Committee meetings TILL 31^ST JULY 2020

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

Ø  The Circular was issued to:

1.      All listed entities

2.      All Recognized Stock Exchanges

Ø 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 to be held between the period December 1, 2019 and June 30, 2020.

Further Relaxation from SEBI

SEBI has decided to:

1. extension of maximum time gap between two board/Audit Committee meetings 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 audit committees of listed entities shall ensure that they meet atleast four times a year, as stipulated under Regulations 17(2) and 18(2)(a) of the LODR Regulations.

Ø  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

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