CAIRR Update May 15, 2020

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CAIRR Update May 15, 2020

May 15, 2020
Summary of the Circulars issued by SEBI on 14/05/2020
1. SEBI relaxes applicability of SEBI Circular dated October 10, 2017 on non-compliance with the Minimum Public Shareholding (MPS) requirements
Through this circular, SEBI has relaxed the applicability of its earlier circular dated 10/10/2017, which laid down the procedure to be followed by the recognized stock exchanges/depositories with respect to MPS non-compliant listed entities, their promoters and directors, including levy of fines, freeze of promoter holding etc.
As per this circular, Stock Exchanges are advised not to take any penal action towards any non-compliance by the Listed entities for whom the deadline to comply with MPS requirements falls between the period from March 1, 2020 to August 31, 2020. Penal actions, if any, initiated by Stock Exchanges from March 1, 2020 till date for non-compliance of MPS requirements by such listed entities may be withdrawn.
Aforesaid circular is integrated in our free to use website
2. SEBI grants relaxations relating to procedural matters on Takeovers and Buy-back due to CoVID-19 pandemic pertaining to open offers and buy-back tender offers opening upto July 31, 2020
Through this circular, SEBI has granted relaxations with respect to service of the letter of offer and/or tender form and other offer related material to shareholders, which may  be  undertaken  by  electronic  transmission  as  already  provided under Regulation  18(2)  of  the  SEBI (Substantial  Acquisition  of  Shares  and  Takeovers)  Regulations, 2011 and  Regulation  9(ii)  of  SEBI    (Buy-back    of    securities) Regulations,  2018, subject to the guidelines prescribed in the said circular with respect to electronic dispatch of forms and related material, pertaining  to  open  offers  and buy-back tender offers opening up to July 31, 2020.
Provisions with respect to SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 are integrated in our free-to-use website for your ready reference.

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