- MCA urges companies to allow their employees to Work From Home
- On this compliance, reports have to submit on 23rd March in a web form
- SEBI announces temporary relaxations from compliance of certain provisions
Coronavirus 2019 (COVID 19) has had a grave impact on all possible avenues of work and day-to-day life. Authorities are taking steps to contain this pandemic, and coming out measures to support the economy and business. In a recent media release, the ministry of corporate affairs (MCA) has asked businesses to continue the work-from-home policy for their employees as much as possible and has south compliance reports on their readiness to combat the disease. Secretary of MCA, Injeti Srinivas urged businesses to implement necessary preventive measures such as video conferencing, staggered work timings, work-from-home policies and advisories by public health authorities.
Injeti said that the compliance reports have to submit on 23rd March in a web form and stated, “since companies and limited liability partnerships (LLPs) are major employers, especially in urban areas, their full co-operation is essential in containing the spread, morbidity, and mortality due to the disease”. Furthermore, the MCA said that in view of the gravity of the situation, it has relaxed rules on board meetings and has dismissed the need to hold physical meetings to approve financial statements, board reports, and restructuring until the end of June.
As part of disaster management to meet this urgent and severe health exigency, all companies and LLPs are expected and are strongly advised to put in place an immediate plan to implement the work from the home policy as a temporary measure till 31 March 2020, after which the position will be reviewed by appropriate authorities as per the evolving situation
With regard to the global market, MCA said that businesses around the world have taken a hard-hitting due to the pandemic resulting in the shutdown of cities and factories disrupting the complete supply chain and raising fears of a global recession. Around the world governments and businesses have suspended unnecessary travel and have closed the borders in order to contain the spread of COVID 19.
Reports that Company Affirmation of Readiness (CAR) will pose an additional compliance burden on companies are not accurate. The form is a simple Yes/No on the adoption of 'work from home'. It is a confidence building measure during a public health emergency. #IndiaFightCorona https://t.co/S2pl9WPQw3 pic.twitter.com/QUuStJ0ROd
— NSitharamanOffice (@nsitharamanoffc) March 20, 2020
In addition, the security and exchange board of India (SEBI) has also announced relaxations from compliance of certain provisions of the SEBI Regulations 2015 due to the pandemic. The circular comprising the temporary relaxations from certain compliance stipulations was issued on 19th March.
Here is the detailed list of relaxations from compliances.
Sl. No |
Regulations and associated filings |
Period of relaxation |
|
Regulation 7(3) relating to half-yearly compliance certificate on share transfer facility |
1 Month |
|
Regulation 13(3) relating to the quarterly statement of Investor complaints |
3 Weeks (approx) |
|
Regulation 24A read with circular No CIR/CFD/CMD1/27/2019 dated February 8, 2019 relating to Annual Secretarial compliance report |
1 Month |
|
Regulation 27(2) relating to filing of quarterly Corporate Governance report |
1 Month |
|
Regulation 31 relating to filing of quarterly Shareholding Pattern |
3 Weeks (Approx) |
|
Regulation 33 relating to filing of quarterly and annual Financial Results |
45 Days/ 1 Month |