SEBI issues advisory on disclosure of material impact of COVID-19 pandemic on listed entities under SEBI (LODR) Regulations

May 22, 2020 | by Avantis RegTech Legal Research Team

Secretarial Compliance

The Securities and Exchange Board of India (SEBI) on May 20, 2020 has granted several relaxations to the listed entities in terms of timelines for filing of various reports or disclosures under (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Due to the outbreak of COVID-19 pandemic, SEBI has observed that many listed entities have made disclosures by shutting down the operations under LODR Regulations.

There should not be distortions in the market due to gaps in information available. Therefore 

it is important for a listed entity to ensure that all available information about the impact of these events on the company and its operations is communicated in a timely manner to its investors and stakeholders.

The listed entities should disclose the following information:-

• Impact of Covid-19 on business

• Ability to maintain operations including the factories/units/office spaces functioning and closed down; 

• Schedule for restarting of operations and steps for smooth functioning of operations;

• Estimation of the future impact of CoVID-19 on its operations;

• Details of impact of Covid-19 on listed entities; these details include capital resources, profitability, liquidity position, assets, supply chain etc.;

• Agreement where non-fulfilment of the obligations by any party will have significant impact on the listed entity’s business.

This Circular shall come into force with immediate effect.

[SEBI Circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/84] 


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