Capital market regulator SEBI on Friday extended relaxation in listed companies so that they do not have to send original copies of annual report to their shareholders till December this year.
The decision was taken after SEBI received multiple representations from listed companies to resolve the need to send hard copies of shareholders’ annual reports.
Against this background, Watchdog decided that by December 31, 2022, the LODR (Listing Obligation and Disclosure Requirements) would provide relaxation from the regulation, requiring companies to send hard copies of annual reports to unregistered shareholders of their email addresses, according to a circular.
Further, in accordance with the LODR rules, the notification of the annual general meeting published by the advertisement should contain a link to the annual report so that the shareholders may have access to the full annual report.
“Although it has been emphasized that … in accordance with the LODR regulations, listed companies must send hard copies of the full annual report to all shareholders who request it,” Sebi said.
Further, according to the circular, the requirement to send proxy forms till December 31, 2022 in case of general meetings held only through electronic mode has been abolished.
The new structure will come into effect immediately, the Securities and Exchange Board of India (SEBI) said.
Earlier, the regulator granted similar relaxation to listed companies until December 2021.
The latest move comes after the Ministry of Corporate Affairs (MCA) on May 5 relaxed the original copy of the 2022 financial statements from December 31, 2022.