COVID-19: Companies get more time from SEBI to file earning reports

Last Updated at: March 25, 2020
379
COVID-19 Coronavirus_ Companies get more time from SEBI to file earnings

Safety is our utmost priority. Thanks to Government, it has taken several necessary measures to fight COVID-19. Simultaneously, companies have proactively resorted to work-from-home options to protect their employees.

Vakilsearch has asked its employees from Chennai to work from home. Several companies’ employees from Hyderabad, Bengaluru, Delhi-NCR, and Mumbai are working from home now.

Contingency Plans

Necessary arrangements and contingency plans have also been put in place in this regard. But, it has not been ‘smooth’ going for smaller businesses to cope with the restrictions in ‘social distance’, imposed by the Government to combat this pandemic.  Significant concerns related to business continuity are being raised from all quarters and a need is felt to relax at least some of the compliance requirements for Indian business entities. However, it’s heartening to see the Indian Government coming out to extend its helping hand towards the businesses disrupted by the ‘claws’ of this epidemic.

SEBI announced the extension of time limits

In one such welcome step, on 19th March, the Securities and Exchange Board of India (SEBI) has announced the extension of time limits for mandatory filing of earning reports by listed companies. As compared to the earlier limit of 45 days from the quarter-end, they will now get 90 days to file earnings for the Quarter ending March 2020. Besides, the existing deadline of 60 days to file annual audited figures has been extended by another 30 days. Effectively, companies can now file both their quarterly and annual earnings reports by June 30th, for the financial year 2019-20.

Download the app now

Share-holding Pattern Deadline

The regulators have also given extensions for filing of share transfer compliance reports by a month, corporate governance reports by a month and investor compliance statements by 3 weeks. The deadline to file shareholding pattern has also been extended to May 15th, instead of April 21st. To go with all these measures, the Ministry of Corporate Affairs (MCA) has also notified relaxed rules for holding board meetings via video conferencing and other such audio-visual means. The relaxations will be in practice at least till 30th June and have been prescribed to reduce the physical presence of directors. Companies can now conduct all meetings related to approval of books of accounts, financial statements, mergers & restructuring, and board’s report through video conferencing only- till the scare of COVID-19 remains.

All these are welcome measures by the regulators and will do a world of good for the businesses troubled by severe disruptions from the ‘COVID-19 bug’.  The market experts have hailed the proactive decisions by SEBI, amidst a situation marked by restrictions on movement.  This will provide the business leaders the much-needed time to assess disclosure requirements and provide potential accounting guidance amidst the Coronavirus scare. Such relaxations on regulatory compliance will facilitate detailed co-ordination among the functional departments in an organization. The company management will get more time to assess the situation and keep the investors informed. The prescribed relaxations will also help the companies to avoid regulatory action due to a possible delay in ensuring compliances.

Conclusion

The next area of focus for the regulator and the businesses would be to assess the impact of COVID-19 on revenues, pipelines, earning and the on the economy as a whole. We would expect the regulators to come up with a directive to the companies, asking them to disclose the impact of COVID-19 on their businesses. This will improve the investor sentiment, which seems to have taken a heavy blow, due to the sharp dip in the stock market figures.

0

COVID-19: Companies get more time from SEBI to file earning reports

379

Safety is our utmost priority. Thanks to Government, it has taken several necessary measures to fight COVID-19. Simultaneously, companies have proactively resorted to work-from-home options to protect their employees.

Vakilsearch has asked its employees from Chennai to work from home. Several companies’ employees from Hyderabad, Bengaluru, Delhi-NCR, and Mumbai are working from home now.

Contingency Plans

Necessary arrangements and contingency plans have also been put in place in this regard. But, it has not been ‘smooth’ going for smaller businesses to cope with the restrictions in ‘social distance’, imposed by the Government to combat this pandemic.  Significant concerns related to business continuity are being raised from all quarters and a need is felt to relax at least some of the compliance requirements for Indian business entities. However, it’s heartening to see the Indian Government coming out to extend its helping hand towards the businesses disrupted by the ‘claws’ of this epidemic.

SEBI announced the extension of time limits

In one such welcome step, on 19th March, the Securities and Exchange Board of India (SEBI) has announced the extension of time limits for mandatory filing of earning reports by listed companies. As compared to the earlier limit of 45 days from the quarter-end, they will now get 90 days to file earnings for the Quarter ending March 2020. Besides, the existing deadline of 60 days to file annual audited figures has been extended by another 30 days. Effectively, companies can now file both their quarterly and annual earnings reports by June 30th, for the financial year 2019-20.

Download the app now

Share-holding Pattern Deadline

The regulators have also given extensions for filing of share transfer compliance reports by a month, corporate governance reports by a month and investor compliance statements by 3 weeks. The deadline to file shareholding pattern has also been extended to May 15th, instead of April 21st. To go with all these measures, the Ministry of Corporate Affairs (MCA) has also notified relaxed rules for holding board meetings via video conferencing and other such audio-visual means. The relaxations will be in practice at least till 30th June and have been prescribed to reduce the physical presence of directors. Companies can now conduct all meetings related to approval of books of accounts, financial statements, mergers & restructuring, and board’s report through video conferencing only- till the scare of COVID-19 remains.

All these are welcome measures by the regulators and will do a world of good for the businesses troubled by severe disruptions from the ‘COVID-19 bug’.  The market experts have hailed the proactive decisions by SEBI, amidst a situation marked by restrictions on movement.  This will provide the business leaders the much-needed time to assess disclosure requirements and provide potential accounting guidance amidst the Coronavirus scare. Such relaxations on regulatory compliance will facilitate detailed co-ordination among the functional departments in an organization. The company management will get more time to assess the situation and keep the investors informed. The prescribed relaxations will also help the companies to avoid regulatory action due to a possible delay in ensuring compliances.

Conclusion

The next area of focus for the regulator and the businesses would be to assess the impact of COVID-19 on revenues, pipelines, earning and the on the economy as a whole. We would expect the regulators to come up with a directive to the companies, asking them to disclose the impact of COVID-19 on their businesses. This will improve the investor sentiment, which seems to have taken a heavy blow, due to the sharp dip in the stock market figures.

0

FAQs

No FAQs found

Add a Question


No Record Found
SHARE
Senior Executive - Content in Vakilsearch | Former TEDxSKCET Licensee | Content Marketing | Psychology | Engineering (IT) | Google Developers Group (GDG) co-organizer | WTM Ambassador