COVID-19: Sebi gives relaxation to companies from compliance with certain LODR provisions

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January 15, 2021 9:05 PM

LODR norms prescribe that a listed entity shall send a hard copy of the statement containing salient features of all the documents to the shareholders

SebiSEBI is the capital markets regulator in India. File image/Agencies

Amidst the situation arising out of the COVID-19 pandemic, market regulator Sebi on Friday provided relaxation to companies from compliance with certain provisions of Listing Obligations and Disclosure Requirements (LODR) Regulations. Sebi provided relaxations after the Ministry of Corporate Affairs (MCA) came up with circulars in December 2020 and January 2021, extending certain relaxations for companies.

Sebi noted that the MCA has extended relaxations for companies to conduct their extraordinary general meeting through video conferencing or through other audio-visual means up to June 30, 2021 and for annual general meeting of companies due in 2021.

Accordingly, the relaxations in respect of sending physical copies of annual report to shareholders and requirement of proxy for general meetings held through electronic mode are extended for listed entities till December 31, 2021, Sebi said.

“The circular shall come into force with immediate effect,” Sebi said.

LODR norms prescribe that a listed entity shall send a hard copy of the statement containing salient features of all the documents to the shareholders who have not registered their email address, and hard copies of full annual reports to those shareholders who request for it.

Besides, the regulations also specify that the listed entity shall send proxy forms to holders of securities in all cases mentioning that a holder may vote either for or against a resolution.

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