Chapter III of the Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015 enumerates common obligations of listed entities. In this post, we will discuss some of these obligations related to Intermediaries, filings, grievance redressal mechanism
The listed entity, wherever applicable, shall co-operate with and submit correct and adequate information to the intermediaries registered with the Board such as credit rating agencies, registrar to an issue and share transfer agents, debenture trustees etc, within timelines and procedures specified under the Act, regulations and circulars issued there under. [Regulation 8]
Requirements of this regulation shall not be applicable to the units issued by mutual funds listed on a recognised stock exchange(s) for which the provisions of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 shall be applicable. [Proviso to Regulation 8]
The listed entity shall have a policy for preservation of documents, approved by its board of directors, classifying them in at least two categories as follows-
(a) documents whose preservation shall be permanent in nature ;
(b) documents with preservation period of not less than eight years after completion of the relevant transactions. [Regulation 9]
This is prerogative of Board of Directors to prepare a policy of such classification for the purpose of preservation.
The listed entity may keep documents specified in clauses (a) and (b) in electronic mode. [Proviso to Regulation 9]
The listed entity shall file the reports, statements, documents, filings and any other information with the recognised stock exchange(s) on the electronic platform as specified by the Board or the recognised stock exchange(s). [Regulation 10(1)]
The listed entity shall put in place infrastructure as required for compliance with sub-regulation (1). [Regulation 10(2)]
This regulation places obligation on listed entity to put in place infrastructure for filing the reports, statements, documents, filings and other information with stock exchange on the electronic platform.
The listed entity shall ensure that any scheme of arrangement /amalgamation /merger /reconstruction /reduction of capital etc. to be presented to any Court or Tribunal does not in any way violate, override or limit the provisions of securities laws or requirements of the stock exchange(s). [Regulation 11]
Any such scheme shall be in accordance with provisions of securities laws and requirements of stock exchanges. This means such scheme shall be in compliance with Rules and regulations made under SCRA and SEBI Act.
This regulation shall not be applicable for the units issued by Mutual Fund which are listed on a recognised stock exchange(s). [Proviso to Regulation 11]
The listed entity shall use any of the electronic mode of payment facility approved by the Reserve Bank of India, in the manner specified in Schedule I, for the payment of the following:
(c) redemption or repayment amounts. [Regulation 12]
Where it is not possible to use electronic mode of payment, ‘payable-at-par’ warrants or cheques may be issued. [First Proviso to Regulation 12]
Where the amount payable as dividend exceeds one thousand and five hundred rupees, the ‘payable-at-par’ warrants or cheques shall be sent by speed post. [Second Proviso to Regulation 12]
The listed entity shall ensure that adequate steps are taken for expeditious redressal of investor complaints. [Regulation 13(1)]
The listed entity shall ensure that it is registered on the SCORES platform or such other electronic platform or system of the Board as shall be mandated from time to time, in order to handle investor complaints electronically in the manner specified by the Board. [Regulation 13(2)]
SCORE is a platform where through which SEBI takes up complaint related to issue and transfer of securities and non – payment of dividend with listed companies. SEBI also take up complaint against various intermediaries registered with it and related issues through this platform. SCORE facilitates investors to lodge complaint online with SEBI and subsequent view it status.
The listed entity shall file with the recognised stock exchange(s) on a quarterly basis, within twenty one days from the end of each quarter, a statement giving the number of investor complaints pending at the beginning of the quarter, those received during the quarter, disposed of during the quarter and those remaining unresolved at the end of the quarter. [Regulation 13(3)]
Due date for such quarterly statement is twenty one days from end of each quarter i.e. 21st July, 21st October, 21st January and 21st April for quarter ended on 30th June, 30th September, 31st December and 31st March.
The statement as specified in sub-regulation (3) shall be placed, on quarterly basis, before the board of directors of the listed entity. [Regulation 13(4)]
The listed entity shall pay all such fees or charges, as applicable, to the recognised stock exchange(s), in the manner specified by the Board or the recognised stock exchange(s). [Regulation 14]
Please note: This blog invite readers to share their comments, suggestions, hardship, queries and everything in comment section. This blog post is not a professional advice but just a knowledge sharing initiative for mutual discussion.