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9May
Compliance Relaxations by SEBI amidst COVID-19

Amidst unprecedented outbreak of pandemic coronavirus (Covid-19), the Securities and Exchange Board of India (SEBI) has granted temporary relaxation to Equity listed entities in relation to compliance with certain deadlines under various provisions of the SEBI regulations. SEBI has granted the said relaxations vide its circulars dated March 19, 2020, March 23, 2020, March 26, 2020, March 27, 2020, and April 13, 2020.

In this article, an effort has been made to consolidate all the above relaxations and present a brief summary stating the due dates and revised due dates in respect of compliances to be done by the Listed Companies whose equity shares are listed on Stock Exchange(s).

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8May
MCA relaxations under the Companies Act, 2013: COVID-19 Impact

Due to outbreak of unprecedented novel coronavirus (COVID – 19) throughout the world including India, lockdowns and unexpected restrictions have been imposed on the public as well on the corporate sector. Companies are likely to face many problems in the timely compliances of various applicable laws. Taking into account the hardships being faced by the companies, Government of India has temporarily relaxed a number of compliances by the companies. Some of the major relaxations given by the Ministry of Corporate Affairs (MCA) under the Companies Act, 2013 are outlined below.

MCA vide its notification dated 19th March, 2020 has dispensed with the need to conduct physical board meetings till 30th June, 2020 in relation to matters which are otherwise matters not permitted to be dealt with through video conferencing or other audio visual means under the Companies Act, 2013 and the rules thereunder, including the approval of the annual financial statements, Board’s report, Prospectus, Audit Committee Meetings for consideration of Financial Statement and approval of the matter relating to amalgamation, merger, demerger, acquisition and takeover. Consequently, such meetings may be held through video conferencing or other audio-visual means from 19th March, 2020 until 30th June, 2020.

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7May
IBC Threshold increased: Implications

Vexatious initiation of insolvency process as arm-twisting tool, merely for recovery of dues has been a cause of concern since long due to low threshold of default of Rs.1 Lakh prescribed under the Insolvency and Bankruptcy Code, 2016 (IBC). While there was long outstanding demand for raising the threshold limit for initiating insolvency process, the notification has come in the wake of recent outbreak of the Coronavirus disease (COVID –19). The minimum default requirement under IBC now stands increased hundred times; from Rs.1 Lakh to Rs. 1 Crore.

Ministry of Corporate Affairs vide notification no. S.O. 1205(E) dated 24 March 2020 1 has amended Section 4 of the Insolvency and Bankruptcy Code, 2016 (IBC) vide which it has raised the threshold of default for filing of an insolvency petition under the Insolvency and Bankruptcy Code, 2016 (IBC) from Rs.1 Lakh to Rs. 1 Crore.

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  1. https://ibbi.gov.in//uploads/legalframwork/48bf32150f5d6b30477b74f652964edc.pdf[↩]