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Listing Regulation

 

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Amendments to Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

The listed companies are expect to be in compliance with the requirements of the revised SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015:

1. Related Party Definition: New Proviso added – “Provided that any person or entity belonging to the promoter or promoter group of the list entity and holding 20% or more of shareholding in the listed entity shall deem to be a related party”

2.Related Party Transaction [Reg 23(1)]: “The listed entity shall formulate a policy on materiality of related party transactions (RPT) and on dealing with related party transactions including clear threshold limits duly approved by the board of directors and such policy shall be reviewed by the board of directors at least once every three years and updated accordingly.”

3. Related Party Transaction [Reg 23(1A)]: “With effect from July 01, 2019 a transaction involving payments with respect to brand usage or royalty shall be considered material if such transaction(s) during a financial year, exceed 2% of the annual consolidated turnover of the listed entity as per the last audited financial statements.”

4. Related Party Transaction [Reg 23(4)]: A related party shall not vote to approve shareholder’s resolution.

5. Related Party Transaction [Reg 23(9)]:

“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.”

6. Independent Director [Reg 16(1)(b)(ii)]: “A non – executive director who is or was not a promoter of the listed entity or its holding, subsidiary or associate company or member of the promoter group of the listed entity (Effective from 1 October 2018).”

7. Independent Director [Reg 16(1)(b)(viii)]: “Following new criteria added: Reg 16(1)(b)(viii) who is not a non-independent director of another company on the board of which any non-independent director of the listed entity is an independent director.”

Proposed Amendment- 2020

SEBI has introduced amendments to its regulations for easier disclosure to investors of financial performance. According to a consultation paper uploaded on the regulator ‘s website. The Securities and Exchange Board of India intends to amend its listing regulations to bring down the period. It takes for a listed company to report the approval of its financials to stock exchanges.

By Oct. 11, it had invited feedback from stakeholders. Within 30 minutes after a board meeting finishes, companies report accepted financials to stock exchanges. Yet board meetings can take several days in some cases, and investors get data after it ends.

SEBI has now suggested that, even if the board meeting has not concluded. A listed organisation would have to report financial results within 30 minutes of the completion. Of the debate on the Results Approval Agenda.

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