March 30, 2020
Summary of the memorandum, circular and notifications issued by MCA, SEBI and IBBI during 27/03/2020 – 29/03/2020
1. Designated fund to deposit CSR Contribution towards CoVID-19 Pandemic
Further to the recent notification, which enabled any contribution to the fund set up by the Central Government in mitigating CoVID-19 pandemic, as an eligible CSR expenditure under Schedule VII of the Companies Act, 2013, the Government of India has set up the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund’ (PM CARES Fund) with the primary objective of dealing with any kind of emergency or distress situation such as that posed by COVID 19 pandemic.
Therefore, any contribution made to the PM CARES Fund shall qualify as CSR expenditure under the Companies Act, 2013.
2. Relaxation of compliance to Listed Entities under SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 due to the COVID-19 pandemic.
SEBI has extended the deadlines with respect to compliance with certain disclosure-related provisions under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, as notified in its circular to help reduce the burden on shareholders and promoters of target companies due to CoVID-19 pandemic.
Details of the notification are integrated in our free-to-use website www.ca2013.com for your quick reference.
3. Extension of fee payment deadline by the Insolvency Professional and timelines for intimation for appointment/cessation of director/partner in Insolvency Professional Entity(IPE) with effect from 28th March, 2020
IBBI, vide the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2020, has extended the deadline to 30th June, 2020, (as against the earlier deadline of 30th April, 2020) for payment of 0.25% of the professional fee earned to the Board towards the services rendered by the IP in the FY 2019-20.
Further, the timeline to intimate the Board on any appointment or cessation of director/partner in the IPE, where such change falls within the period 28th March, 2020 to 31st December, 2020, shall be done within 30 days from the date of such change.
4. Extension of deadlines with respect to certain provisions in the Schedule under Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016 with effect from 28th March, 2020
IBBI, vide this notification, has extended the deadline to 30 days in case of deemed approval of issuance/renewal of an assignment and appeal to membership committee by the aggrieved applicant under Clauses 12A(5) and 12A(7) of the aforesaid regulation, respectively.
It is to be noted that this extension will be effective on and from the date of commencement of the Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Amendment) Regulations, 2020 to 30th September 2020.
5. Exclusion of lock-down period in counting the days for various timelines under Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016
IBBI, in line with the other regulatory bodies, has notified vide Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2020 that the period of lock down imposed by the Central Government in the wake of COVID- 19 outbreak shall not be counted for the purposes of the time-line for any activity that could not be completed due to such lock down, in relation to CIRP. This provision shall come into effect from 29th March, 2020.