March 24, 2020
Key highlights of Circulars issued by MCA and SEBI
1. Expenses made towards Novel Coronavirus (COVID – 19) to qualify as CSR Expense
Keeping in view the decision by Government of India to treat COVID – 19 as a notified disaster, and to mobilise funds for effective recovery of economy, MCA vide its circular dated March 23, 2020 has clarified that expenses made towards COVID – 19 shall qualify as a CSR Expense under heads specified in clause (i) and (xii) of Schedule VII of Companies Act, 2013.
These measures highlight steps taken by government at large to encourage the participatory role of corporates in building the nation during critical times.
2. SEBI circular dated March 23, 2020 on Relaxation from compliance with certain provisions of the LODR and other SEBI circulars due to the COVID -19 virus pandemic
In continuation to its circular dated March 19, 2020, Market Regulator, SEBI has granted relaxation to all listed entities, issuers who have listed or are proposing to list NCDs/NCRPS/CPs/MDS, with regard to due dates for various compliance and filings such as financial results, large corporate disclosure, filings for issuers of municipal debt securities, disclosures in offer document etc.
This decision is made in order to facilitate conduct of business while taking necessary precautions against coronavirus.