The global outbreak of corona virus (COVID-19) is an unprecedented event that has led to lockdowns and unexpected restrictions on the public as well as the corporate sector across the world. Due to this situation companies are likely to face difficulties in undertaking timely compliances of various applicable laws. Keeping in mind the aforesaid, SEBI has issued numerous relaxations for compliances under provisions of the SEBI. We have analysed below some of the major relaxations introduced by SEBI.

Relaxations introduced by the Securities and Exchange Board of India

In order to reduce compliance burden on listed entities, the Securities and Exchange Board of India (SEBI) has, inter alia, issued various circulars on 29th April 2021. Such relaxations are as below:

Extension of time for compliances/filings –

SEBI has extended the last date of filing for various compliances as quarterly, half yearly and annual submissions to be made. Click here  for order Relaxation from  compliance  with  certain  provisions  of  the  SEBI(LODR) Regulations 2015 and Click here for the certain  provisions  of  the  SEBI(LODR) regulations 2015/ other applicable circulars  due to CoVID-19 pandemic.

The major relaxations are as below:

• Listed   entities   are   permitted   to   use   digital   signature certifications for authentication/ certification  of  filings/submissions  made  to  the  stock  exchange under SEBI(LODR) Regulations, 2015 for all filings until December 31,2021.

• The  Circular  is  issued  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.

Extension of time for compliances with the following regulatory requirements by the Trading Members / Clearing  Members  /  Depository  Participants  /  KYC  Registration  Agencies  –   In view of the prevailing situation due to Covid-19 pandemic and representation received from the Association of National Exchanges Members of India (ANMI), Stock Exchanges and Depositories, it has been decided to extend the timelines for compliance with the following regulatory requirements by the Trading Members / Clearing  Members  /  Depository  Participants  /  KYC  Registration  Agencies,  Click here for order. The relaxations are as below:

Relaxation  in  time  period  for  certain  activities  carried  out  by  Depository Participant:

• This circular is issued 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 to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets.

In current scenario of the lockdown and restrictions imposed, the above temporary relaxations will enable companies to avoid penalties on account of unavoidable delay in meeting their regulatory compliances.

Disclaimer: This is an effort by Lexcomply.com to contribute towards improving compliance management regime. User is advised not to construe this service as legal opinion and is advisable to take a view of subject experts.