SEBI extends due date for submission of financial results to 15th September, 2020
The economic impact of the 2020 coronavirus pandemic in India has been largely disruptive. The lockdown though necessary has led to a disastrous impact on the economy.
The Government of India announced a variety of measures to tackle the situation, from food security and extra funds for healthcare and for the states, to sector related incentives and tax deadline extensions. Earlier, Securities and Exchange Board of India (SEBI) had given companies time till July 31 to file their results for the period ended March 31 due to COVID related hurdles in finalizing accounts.
In a major relief to companies, on29th July, SEBI extended the deadline for submission of financial results for the quarter, half-year, and financial year ended 30th June 2020 to 15th September, 2020.
Due date of filing financial results as per SEBI
Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations) pertains with Financial Results. According to Regulation 33, a listed entity shall submit:
- quarterly and year-to-date standalone financial results to the stock exchange within 45 days of end of each quarter, other than the last quarter
- audited standalone financial results for the financial year, within 60 days from the end of the financial year along with the audit report and either Form A (for audit report with unmodified opinion) or Form B (for audit report with modified opinion)
Accordingly, listed entities are required to submit the financial results for the quarter/half year ended June 30, 2020, on or before August 14, 2020.
SEBI, vide circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/106 dated June 24, 2020, had extended the timeline for submission of financial results by listed entities for the quarter / half-year / financial year ended 31st March 2020 to July 31, 2020 due to the impact of the COVID-19 pandemic.
Extension of time for submission of financial results for the quarter/half year/ financial year ended 30th June 2020
SEBI received representations requesting extension of time for submission of financial results for the quarter/half year ended June 30, 2020, due to the shortened time gap between the extended deadline for submission of financial results for the period ended March 31, 2020 (31st July) and the quarter/half year ended June 30, 2020 (14th August).
After consideration, the market regulator extended the timeline for submission of financial results under Regulation 33 of the LODR Regulations, for the quarter/half year/financial year ended 30th June 2020, to September 15, 2020.
SEBI further said that this circular shall come into force with immediate effect and advised all stock exchanges to bring the provisions of this circular to the notice of all listed entities.
Relaxation in timelines for compliance with regulatory requirements by SEBI
In view of the prevailing situation due to COVID-19 pandemic and representation received from the Depositories, SEBI also decided to further extend the timelines for compliance with the regulatory requirements by DPs / RTAs / KRAs, mentioned in the SEBI circulars, as under:
|Compliance||Extended timeline / Period of Exclusion|
|Processing of the demat request form by Issuer/RTA||Period of exclusion shall be from 23.03.2020 till 30.09.2020. A 15 day time period after 30.09.2020 is allowed to depository/DP’s to clear backlog|
|Processing of the demat request form by the Participants||Period of exclusion shall be from 23.03.2020 till 30.09.2020. A 15 day time period after 30.09.2020 is allowed to depository/DP’s to clear backlog|
|KYC Application form & supporting documents of the clients to be uploaded on system of KRA within 10 working days||Period of exclusion shall be from 23.03.2020 till 30.09.2020. A 15 day time period after 30.09.2020 is allowed to depository/DP’s to clear backlog|
|Submission of half yearly Internal Audit Report by DP’s for half year ended 31.03.2020||30.09.2020|
|Redressal of Investor Grievances|
|Transmission of Securitites|
|Closure of demat accounts|
|System audit on annual basis|
SEBI’s move to relax the deadlines is expected to give more time to companies already struggling with operations part amid the pandemic. In-line with the efforts to provide relief to the sagging businesses, Finance Minister Nirmala Sitharaman earlier announced to decriminalise some offences under the Companies Act.
The SEBI has also introduced new norms to give more fund-raising flexibility to stressed firms. The amendments can help promoters get financial investors on board without losing control of the company.