The Companies which are Listed on the Stock Exchange(s) has required to be comply with the various SEBI Regulations.

In this Article we will discuss about the Quarterly/Half Yearly/Annually and General Compliance under the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeover) Regulations, 2011 and Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015:

Sr. No. Regulation Particulars Time Limit

QUARTERLY COMPLIANCE

1 Reg. 13(3) of LODR, 2015 Statement of Investor complaints:

The listed entity shall file with the recognized stock exchange(s) on a quarterly basis, within twenty one days from the end of each quarter, a statement giving the number of investor complaints pending at the beginning of the quarter, those received during the quarter, disposed of during the quarter and those remaining unresolved at the end of the quarter.

Within 21 days from the end of each quarter.
2 Reg. 27(2) of LODR, 2015 Corporate Governance:

The listed entity shall submit a quarterly compliance report on corporate governance within fifteen days from close of the quarter. Further it may be noted that it shall not apply, in respect of – (a) the listed entity having paid up equity share capital not exceeding rupees ten crore and net worth not exceeding rupees twenty five crore, as on the last day of the previous financial year: Provided that where the provisions of the regulations specified in this regulation becomes applicable to a listed entity at a later date, such listed entity shall comply with the requirements those regulations within six months from the date on which the provisions became applicable to the listed entity. (b) the listed entity which has listed its specified securities on the SME Exchange.

Within 15 days from quarter end.
3 Reg. 31 of LODR, 2015 Shareholding   Pattern:

(1) The listed entity shall submit to the stock exchange(s) a statement showing holding of securities and shareholding pattern separately for each class of securities, in the format specified by the Board from time to time within the following timelines –

  • one day prior to listing of its securities on the stock exchange(s);
  • on a quarterly basis, within twenty one days from the end of each quarter;
  • within ten days of any capital restructuring of the listed entity resulting in a change exceeding two per cent of the total paid-up share capital:

Provided that in case of listed entities which have listed their specified securities on SME Exchange, the above statements shall be submitted on a half yearly basis within twenty one days from the end of each half year.

Within 21 days from quarter end.
4 Reg. 76 of the SEBI (Depositories and Participants) Regulations, 2018 Compliance Status of Reconciliation of Shares and Capital Audit:

Listed companies are required to submit Reconciliation of Share Capital Audit Report on a quarterly basis to the stock exchanges audited by a qualified chartered accountant or a practicing company secretary, for the purpose of reconciliation of share capital held in depositories and in physical form with the issued / listed capital.

Within 30 days from the end of the Quarter.
5 Reg. 33 of LODR, 2015 Financial Results:

The listed entity shall submit quarterly and year-to-date standalone financial results to the stock exchange within forty-five days of end of each quarter, (other than last quarter) along with Limited Review Report or Audit Report as applicable.

The listed entity shall submit Annual Audited standalone Financial results for the financial year, within sixty days from the end of the financial year along with the audit report and either with Statement on Impact of Audit Qualifications ( applicable for audit report with modified opinion(s) ) or declaration (applicable for audit reports with unmodified opinion(s) ).

Provided that if the listed entity has subsidiaries, it shall, while submitting annual audited standalone financial results also submit annual audited consolidated financial results along with the audit report and Statement on Impact of Audit Qualifications (applicable for audit report with modified opinion). Provided further that, in case of audit reports with unmodified opinion(s), the listed entity shall furnish a declaration to that effect to the Stock Exchange(s) along with the annual audited financial results.

For the purpose of this Financial Result regulations , any reference to “quarterly/quarter” in case of listed entity which has listed their specified securities on SME Exchange shall be respectively read as “half yearly/half year”

Within 45 days from quarter end and in case of Annual Financial Result, within 60 days from end of Financial Year.
6 Reg. 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 Certificate Under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018

Within fifteen days  of  receipt  of  the  certificate  of  security  from  the  participant  the  issuer  shall confirm to the depository that securities comprised in the said certificate have been listed  on the stock exchange or exchanges where the earlier issued securities are listed and shall also after due verification immediately mutilate and cancel the certificate of security and substitute  in its record the name of the depository as the registered owner and shall send a certificate to  this effect to the depository and to every stock exchange where the security is listed:

Provided that in case of unlisted companies the condition of listing on all the stock exchanges  where earlier issued shares are listed, shall not be applicable

Within fifteen days  of  receipt  of  the  certificate from RTA

HALF YEARLY COMPLIANCE

7 Reg. 7 (3) of LODR, 2015 Compliance Certificate certifying maintaining physical & electronic transfer facility:

The listed entity shall submit a compliance certificate to the exchange, duly signed by both that is by the compliance officer of the listed entity and the authorized representative of the share transfer agent, wherever applicable, within one month of end of each half of the financial year, certifying maintaining physical & electronic transfer facility either in house or RTA as applicable.

Within one month of end of each half of the financial year.
8 Reg. 40(9) of LODR, 2015 Certificate from Practicing Company Secretary:

The listed entity shall ensure that the share transfer agent and/or the in-house share transfer facility, as the case may be, produces a certificate from a practicing company secretary within one month of the end of each half of the financial year, certifying that all certificates have been issued within thirty days of the date of lodgement for transfer, sub-division, consolidation, renewal, exchange or endorsement of calls/allotment monies.

Within one month of the end of each half of the financial year.
9 Reg. 23(9) of LODR, 2015 Disclosure of Related Party Transactions

The  Listed  Entity  shall  submit  within  30  days  from  the  date  of  publication  of  its standalone  and  consolidated  financial  results  for  the  half  year,  disclosures  of  related  party transactions  on  a  consolidated  basis,  in  the  format  specified  in  the  relevant  accounting standards for annual results to the stock exchanges and publish the same on its website

within  30  days  from  the  date  of  publication  of  its standalone  and  consolidated  financial  results  for  the  half  year

YEARLY COMPLIANCE

10 Reg. 34 of LODR, 2015 Annual Report:

The listed entity shall submit to the stock exchange and publish on its website- A copy  of  the  annual  report  sent  to  the  shareholders  along  with  the  notice  of  the  annual  general  meeting  not  later  than  the  day  of  commencement  of  dispatch  to  its shareholders.

In  the  event  of  any  changes  to  the  annual  report,  the  revised  copy  along  with  the  details  of  and  explanation  for  the  changes  shall  be  sent  not  later  than  48  hours  after  the Annual General Meeting.

Further, The Companies shall have to submit their Annual Return in XBRL mode to the Stock Exchange(s).

In case of top 500 listed entities based on market capitalization (calculated as on March 31 of every financial year), Business responsibility report is required to include in Annual Report is compulsory as per prescribed Format. However in case of other than top 500 listed companies based on market capitalization and listed entities which have listed their specified securities on SME Exchange, may include these Business responsibility reports on a voluntary basis

Not later than the day of commencement of dispatch of Annual Report to its shareholders.
11 Reg. 24A of LODR, 2015 Annual Secretarial Compliance Report

Listed Entities shall additionally,  on  an annual basis, require a  check by  the PCS on compliance   of all   applicable   SEBI   Regulations   and   circulars/ guidelines issued  thereunder,  consequent  to  which,  the  PCS  shall submit a  Annual Secretarial Compliance Report to  the  listed  entity in  the  manner  specified  by SEBI.

Further, BSE Limited vide its Circular to Listed Companies dated 14th May, 2019, clarified that Companies who have claimed exemption under Regulation 15(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and submitted Non-Applicability Certificate for Corporate Governance Report are NOT REQUIRED to submit any other document or disclosure for claiming exemption for Annual Secretarial Compliance Certificate.

within 60 days of the end of the financial  year

 

 EVENT BASED COMPLIANCE

12 Reg. 7 of LODR, 2015 Appointment of New Share Transfer Agent:

In case of any change or appointment of a new share transfer agent, the listed entity shall enter into a tripartite agreement between the existing share transfer agent, the new share transfer agent and the listed entity, in the manner as specified by the Board from time to time. The listed entity shall intimate such appointment, to the stock exchange(s) within seven days of entering into the agreement.

Within 7 days of entering into the agreement.
13 Reg. 14 of LODR, 2015 Listing Fees & Other charges:

The listed entity shall pay all such fees or charges, as applicable, to the recognised Stock Exchange(s), in the manner specified by the Board or the recognised Stock Exchange(s).

As Applicable
14 Reg. 29 of LODR, 2015 Notice for Board Meeting to consider the prescribed matters:

The Company shall give an advance notice of at least 5 days for Financial Result as per regulation 29 (1) (a)

29. The listed entity shall give prior intimation to stock exchange about the meeting of the board of directors in which any of the following proposals is due to be considered:

(a) financial results viz. quarterly, half yearly, or annual, as the case may be;

Advance notice of at least 5 days
In case of other matters as stated in regulation 29 (1) (b) to (f) – 2 Working days in advance (Excluding the date of the intimation and date of the meeting) to Stock Exchange:

Regulation 29

(b) proposal for buyback of securities;

(c) proposal for voluntary delisting by the listed entity from the stock exchange(s);

(d) fund raising by way of further public offer, rights issue, American Depository Receipts/Global Depository Receipts/Foreign Currency Convertible Bonds, qualified institutions placement, debt issue, preferential issue or any other method and for determination of issue price:

Provided that intimation shall also be given in case of any annual general meeting or extraordinary general meeting or postal ballot that is proposed to be held for obtaining shareholder approval for further fund raising indicating type of issuance.

(e) Declaration/ recommendation of dividend, issue of convertible securities including convertible debentures or of debentures carrying a right to subscribe to equity shares or the passing over of dividend.

(f) the proposal for declaration of bonus securities where such proposal is communicated to the board of directors of the listed entity as part of the agenda papers:

Provided that in case the declaration of bonus by the listed entity is not on the agenda of the meeting of board of directors, prior intimation is not required to be given to the stock exchange(s).

2 Working days in advance (Excluding the date of the intimation and date of the meeting)
The Company shall give an advance notice of 11 working days in case matter related to alteration in i) Securities ;ii) date of interest or redemption of Debenture/bond as per regulation 29(3) (a) ,(b).

29(3) The listed entity shall give intimation to the stock exchange(s) at least eleven working days before any of the following proposal is placed before the board of directors –

(a) Any alteration in the form or nature of any of its securities that are listed on the stock exchange or in the rights or privileges of the holders thereof.

(b) Any alteration in the date on which, the interest on debentures or bonds, or the redemption amount of redeemable shares or of debentures or bonds, shall be payable.

Advance notice of 11 working days
15 Reg. 30 of LODR, 2015 Disclosure of Price-Sensitive Information:

The Company has to intimate to the Stock Exchange about the material events which will have a bearing on the performance / operations of the company as well as price sensitive information both at the time of occurrence of the event and subsequently after the cessation of the event. The listed entity shall first disclose to stock exchange(s) of all events, as specified in Part A of Schedule III, or information as soon as reasonably possible and not later than twenty four hours from the occurrence of event or information.

SCHEDULE – III

PART A: DISCLOSURES OF EVENTS OR INFORMATION: SPECIFIED SECURITIES  [See Regulation 30]

The following shall be events/information, upon occurrence of which listed entity shall make disclosure to stock exchange(s):

A. Events which shall be disclosed without any application of the guidelines for materiality as specified in sub-regulation (4) of regulation (30):

1. Acquisition(s) (including agreement to acquire), Scheme of Arrangement (amalgamation/ merger/ demerger/restructuring), or sale or disposal of any unit(s), division(s) or subsidiary of the listed entity or any other restructuring.

Explanation.- For the purpose of this sub-Para, the word ‘acquisition’ shall mean,-

(I) acquiring control, whether directly or indirectly; or,

(ii)acquiring or agreeing to acquire shares or voting rights in, a company, whether directly or indirectly, such that –

(a) the listed entity holds shares or voting rights aggregating to five per cent or more of the shares or voting rights in the said company, or;

(b) There has been a change in holding from the last disclosure made under sub-clause (a) of clause (ii) of the Explanation to this sub-Para and such change exceeds two per cent of the total shareholding or voting rights in the said company.

2. Issuance or forfeiture of securities, split or consolidation of shares, buyback of securities, any restriction on transferability of securities or alteration in terms or structure of existing securities including forfeiture, reissue of forfeited securities, alteration of calls, redemption of securities etc.

3. Revision in Rating(s).

4. Refer Sr No. 13

5. Agreements (viz. shareholder agreement(s), joint venture agreement(s), family settlement agreement(s) (to the extent that it impacts management and control of the listed entity), agreement(s)/treaty(ies)/contract(s) with media companies) which are binding and not in normal course of business, revision(s) or amendment(s) and termination(s) thereof.

6. Fraud/defaults by promoter or key managerial personnel or by listed entity or arrest of key managerial personnel or promoter.

7. Change in directors, key managerial personnel (Managing Director, Chief Executive Officer, Chief Financial Officer , Company Secretary etc.), Auditor and Compliance Officer.

8. Appointment or discontinuation of share transfer agent.

9. Corporate debt restructuring.

10. One time settlement with a bank.

11. Reference to BIFR and winding-up petition filed by any party / creditors.

12. Issuance of Notices, call letters, resolutions and circulars sent to shareholders, debenture holders or creditors or any class of them or advertised in the media by the listed entity.

13. Proceedings of Annual and extraordinary general meetings of the listed entity.

14. Amendments to memorandum and articles of association of listed entity, in brief.

15. Schedule of Analyst or institutional investor meet and presentations on financial results made by the listed entity to analysts or institutional investors;

B. Events which shall be disclosed upon application of the guidelines for materiality referred sub-regulation (4) of regulation (30):

1. Commencement or any postponement in the date of commencement of commercial production or commercial operations of any unit/division.

2. Change in the general character or nature of business brought about by arrangements for strategic, technical, manufacturing, or marketing tie-up, adoption of new lines of business or closure of operations of any unit/division (entirety or piecemeal).

3. Capacity addition or product launch.

4. Awarding, bagging/ receiving, amendment or termination of awarded/bagged orders/contracts not in the normal course of business.

5. Agreements (viz. loan agreement(s) (as a borrower) or any other agreement(s) which are binding and not in normal course of business) and revision(s) or amendment(s) or termination(s) thereof.

6. Disruption of operations of any one or more units or division of the listed entity due to natural calamity (earthquake, flood, fire etc.), force majeure or events such as strikes, lockouts etc.

7. Effect(s) arising out of change in the regulatory framework applicable to the listed entity

8. Litigation(s) / dispute(s) / regulatory action(s) with impact.

9. Fraud/defaults etc. by directors (other than key managerial personnel) or employees of listed entity.

10. Options to purchase securities including any ESOP/ESPS Scheme.

11. Giving of guarantees or indemnity or becoming a surety for any third party.

12. Granting, withdrawal , surrender , cancellation or suspension of key licenses or regulatory approvals.

C. Any other information/event viz. major development that is likely to affect business, e.g. emergence of new technologies, expiry of patents, any change of accounting policy that may have a significant impact on the accounts, etc. and brief details thereof and any other information which is exclusively known to the listed entity which may be necessary to enable the holders of securities of the listed entity to appraise its position and to avoid the establishment of a false market in such securities.

D. Without prejudice to the generality of Para (A), (B) and (C) above, the listed entity may make disclosures of event/information as specified by the Board from time to time.

Not later than twenty four hours from the occurrence of event or information.

 

16 Reg. 30 of LODR, 2015 Outcome of Board Meeting (Schedule III Part A- (4):

Outcome of Meetings of the board of directors: The listed entity shall disclose to the Exchange(s), within 30 minutes of the closure of the meeting, held to consider the following:

a) dividends and/or cash bonuses recommended or declared or the decision to pass any dividend and the date on which dividend shall be paid/dispatched;

b) any cancellation of dividend with reasons thereof;

c) the decision on buyback of securities;

d) the decision with respect to fund raising proposed to be undertaken

e) increase in capital by issue of bonus shares through capitalization including the date on which such bonus shares shall be credited/dispatched;

f) reissue of forfeited shares or securities, or the issue of shares or securities held in reserve for future issue or the creation in any form or manner of new shares or securities or any other rights, privileges or benefits to subscribe to;

g) short particulars of any other alterations of capital, including calls;

h) financial results;

i) Decision on voluntary delisting by the listed entity from stock exchange(s).

Within 30 minutes of the closure of the meeting.
17 Reg. 42 of LODR, 2015 Notice for Record Date \ Corporate Action:

The Company must ensure that there is a gap of at least 30 days between 2 book closure and/or record date. The Company shall give an advance notice of at least 7 working days (Excluding the date of the intimation and record date/book closure start date) to the Stock Exchange for corporate actions (Book closure/Record date) fixed for the purpose of corporate benefits like mergers, de-mergers, split , bonus, dividend, rights etc.

Advance notice of at least 7 working days (Excluding the date of the intimation and record date/book closure start date)
The listed entity shall recommend or declare all dividend and/or cash bonuses at least five working days (excluding the date of intimation and the record date) before the record date fixed for the purpose. At least 5  working days (excluding the date of intimation and the record date) before the record date fixed
18 Reg. 43 of LODR, 2015 Declaration of Dividend:

The Company has to declare and disclose the dividend on per share basis only.

——
19 Reg. 43A of LODR, 2015 Dividend Distribution Policy:

The top five hundred listed entities based on market capitalization (calculated as on March 31 of every financial year) shall formulate a dividend distribution policy which shall be disclosed in their annual reports and on their websites.
The dividend distribution policy shall include the following parameters:

(a) The circumstances under which the shareholders of the listed entities may or may not expect dividend;

(b) The financial parameters that shall be considered while declaring dividend;

(c) Internal and external factors that shall be considered for declaration of dividend;

(d) Policy as to how the retained earnings shall be utilized; and

(e) Parameters that shall be adopted with regard to various classes of shares:

Provided that if the listed entity proposes to declare dividend on the basis of parameters in addition to clauses (a) to (e) or proposes to change such additional parameters or the dividend distribution policy contained in any of the parameters, it shall disclose such changes along with the rationale for the same in its annual report and on its website.

The listed entities other than top five hundred listed entities based on market capitalization may disclose their dividend distribution policies on a voluntary basis in their annual reports and on their websites.

Dividend Distribution Policy which shall be disclosed in their Annual Reports and on their Websites.
20 Reg. 44 of LODR, 2015 Voting Result:

The listed entity shall submit to the stock exchange, within forty eight hours of conclusion of its General Meeting, details regarding the voting results in the format specified by the Board.

Within forty eight hours of conclusion of its General Meeting
21 Reg. 46 of LODR, 2015 Company Website:

The listed entity shall maintain a functional website containing the basic information about the listed entity. The listed entity shall disseminate the information as stated in Regulation 46 (2). The listed entity shall ensure that the contents of the website are correct & the listed entity shall update any change in the content of its website within two working days from the date of such change in content.

Update any change in the content of its website within two working days from the date of such change in content.
22 Reg. 30(1) and 30(2) – SEBI Substantial Acquisition of Shares and Takeover) Regulations, 2011 30(1) Every person, who together with persons acting in concert with him, holds shares or voting rights entitling him to exercise twenty-five per cent or more of the voting rights in a target company, shall disclose their aggregate shareholding and voting rights as of the thirty-first day of March, in such target company in such form as may be specified.

30 (2) The promoter of every target company shall together with persons acting in concert with him, disclose their aggregate shareholding and voting rights as of the thirty-first day of March, in such target company in such form as may be specified.

The disclosures required under sub-regulation (1) and sub-regulation (2) shall be made within seven working days from the end of each financial year to;

  • every stock exchange where the shares of the target company are listed; and
  • the target company at its registered office.
Within seven working days from the end of each financial year
23 Reg. 7(2) – SEBI (Prohibition of Insider Trading) Regulations, 2015. 7 (2) Continual Disclosures :

(a). Every promoter, employee and director of every company shall disclose to the company the number of such securities acquired or disposed of within two trading days of such transaction if the value of the securities traded, whether in one transaction or a series of transactions over any calendar quarter, aggregates to a traded value in excess of ten lakh rupees or such other value as may be specified;

(b). Every company shall notify the particulars of such trading to the stock exchange on which the securities are listed within two trading days of receipt of the disclosure or from becoming aware of such information.

(Transaction type include buy/sales/pledge/revoke/Invoke)

Within two trading days of receipt of the disclosure

abbreviation used:

1. LODR = Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

2. SEBI = Securities and Exchange Board of India

3. Reg. = Regulation

(The author i.e. CS Parbat Chaudhari is a Company Secretary in Practice and can be reached at (M) 9887091135 and (E) csparbat@yahoo.com)

“Learning everyday is ultimately the key to success. Don’t ever stop Learning, Dreaming and Achieving.”

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Qualification: CS
Company: Parbat Chaudhari-Proprietor
Location: MUMBAI, Maharashtra, IN
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