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UGC issues revised guidelines for conduct of final year examinations

In order to streamline the impact of lock-downs and social distancing on the conduct of exams, the University Grants Commission of India (UGC), constituted an Expert Committee to deliberate on the issues related to the conduct of examinations and the academic calendar during the pandemic to avoid academic loss to students. The UGC is a statutory body of the Government of India responsible for the coordination, determination and maintenance of standards of teaching, examination and research in university education, in India.

Based on the recommendation of the Expert Committee, the UGC had issued Guidelines on Examinations and Academic Calendar for Universities on 29 April 2020. Under these guidelines it was proposed to conduct examinations in July 2020.

However, in the light of rising COVID-19 cases and the likelihood of it further increasing, the Expert Committee was requested to revisit the guidelines. Pursuant to the recommendations of the committee, on 6 July 2020, UGC issued Revised Guidelines on Examinations and Academic Calendar for the Universities:

The Universities are required to complete terminal semester/ final year examinations for the academic year 2019-2020 by the end of September 2020 in offline/ online/ blended mode.
If a student of terminal semester or final year is unable to appear in the examination, he/she must be given an opportunity to appear in special examinations conducted by the university to ensure that the student is not put to any inconvenience or disadvantage.
The students of terminal semester or final year having backlog should compulsorily be evaluated by conducting exams in offline/ online/ blended mode as per feasibility and suitability.
For intermediate semester/ years guidelines as notified on 29 April 2020 will be applicable.

The Ministry of Home Affairs, keeping in mind the interest of students has agreed to grant an exemption for opening of educational institutions for the purpose of holding final term examinations. Further, the Ministry of the Ministry of Human Resource Development has formulated detailed Standard Operating Procedures for conduct of such examinations, which has been vetted by the Ministry of Health and Family Affairs.

While, the governments of Karnataka and Gujarat have decided to hold university exams pursuant to the UGC Guidelines, some governments such as Maharashtra, Delhi and Orissa have stated that they will not be able to hold exams, and that the guidelines issued by UGC can only be advisory in nature and not mandatory.

Tags KARNATAKA, SOCIAL DISTANCING

Recent measures by the Ministry of Health & Family Welfare to control COVID-19

The Ministry of Health & Family Welfare has recently launched the ‘eBloodServices’ mobile application developed by the Indian Red Cross Society. Other recent significant developments in the sector include:

Release of Advisory for managing healthcare workers in COVID/Non-COVID areas of a hospital;
National Pharmaceutical Pricing Authority to monitor price increase of critical medical equipment;
Release of a ‘guide to address stigma associated with COVID-19’.

To read further details, please click here.

Unlockdown 1.0: Ministry of Home Affairs (MHA) Guidelines

Lockdown measures to contain the spread of COVID-19 has been in force in the country since 24 March 2020.

On 17 May 2020, the Ministry of Home Affairs (MHA), under the orders of the National Disaster Management Authority (NDMA), vide Order No. 40-3/2020-DM-I(A) issued guidelines for the fourth phase of lockdown measures to be taken by the Ministries/ Departments of Government of India, State/ UT Governments and State/ UT Authorities for further containment of COVID-19 in India, which was directed to be in force up to 31 May 2020.

On 30 May 2020, the NDMA, pursuant to Section 6(2)(i) of the Disaster Management Act, 2005, has further directed the MHA to issue orders:

(a) Extending the lockdown in Containment Zones up to 30 June 2020; and
(b) Re-opening prohibited activities in a phased manner in areas outside Containment Zones.

In light of the above, the MHA issued the following guidelines on 30 May 2020 (Order):

Re-opening of activities in areas outside Containment Zones:

The Order primarily permits all activities in areas outside Containment Zones. However, certain specific activities are permitted subject to the Standing Operating Procedures (SOPs) that is to be prescribed by the Ministry of Health and Family Welfare (MoHFW). These specific activities are proposed to be permitted in three phases:

(i) Phase I:

The Order allows the following activities from 8 June 2020:
(a) Religious places and places of worship;
(b) Hotels, restaurants and hospitality services;
(c) Shopping malls.

(ii) Phase II:

Schools, colleges, educational/ training/ coaching institutions etc are proposed to be opened after consultations with States/ UTs, after due deliberations with parents and other stakeholders. Based on such discussions, a decision in this regard is proposed to be taken in the month of July 2020.

(iii) Phase III:

Dates for resuming the following activities is proposed to be decided based on evaluation of the extent of spread and containment of the situation:
(a) International air travel of passengers, except as permitted by MHA;
(b) Metro Rail;
(c) Cinema halls, gymnasiums, swimming pools, entertainment parks, theatres, bars and auditoriums, assembly halls etc;
(d) Social, political, sports, entertainment, academic, cultural, religious functions and other large congregations.

The State/ UTs, based on assessment of the situation, may prohibit certain activities or impose any restrictions as deemed necessary, outside the Containment Zones.

Lockdown in Containment Zones:

(a) The Order directs the District Authorities to demarcate the Containment Zones, on due consideration of the guidelines issued by the MoHFW;
(b) It also imposes continuation of the lockdown in such zones until 30 June 2020;
(c) Only essential activities are to be allowed in the Containment Zones;
(d) Strict perimeter control shall be imposed in such zones to ensure that there is no movement of people in and out of these zones, except for medical emergencies and maintenance of supply of essential goods and services;
(e) The Order also stipulates intensive contact tracing, house-to-house surveillance, and other clinical interventions.
(f) States and UTs may also identify Buffer zones outside the Containment Zones, where new cases are likely to occur. The Order allows the District authorities to exercise their discretion to impose restrictions within such buffer zones.

Movement of Persons and goods:

(a) The Order prohibits restriction on inter-State and intra-State movement of persons and goods. Separate permissions/ approvals as previously required for any such movements is not presently applicable.
(b) If a State/ UT, based on its assessment of the situation on account of public health reasons, proposes to regulate movement of persons, it may do so, by providing adequate publicity in advance of such regulations and procedures to be followed.
(c) States / UTs are also prohibited from restricting movement of any type of goods/ cargo for cross land-border trade under Treaties with neighbouring countries.
(d) Movement of the following persons are required to adhere to the respective SOPs:
(i) movement of person by train, issued vide Order dated May 11, 2020;
(ii) movement of Indian Nationals stranded outside the country and of specified persons to travel abroad, issued vide Order dated May 5, 2020;
(iii) sign-on and sign-off of Indian seafarers, issued vide Order dated April 21, 2020; and
(iv) domestic passenger air travel issued vide Order dated 21 May 2020.

Other restrictions:

(i) Movement of individuals between 9.00pm and 5.00am shall continue to be prohibited throughout the country, except for essential activities.
(ii) Persons above 65 years of age, persons with co-morbidities, pregnant women and children below the age of 10 years are advised to stay at home, except for essential and health purposes.

National Directives for COVID-19 Management:

The Order in its Annexure I has also issued revised directives to be followed throughout the country:

(i) Compulsory wearing of face cover in public places;
(ii) Maintenance of minimum distance of 6 feet in public places;
(iii) Shops to ensure physical distancing and prohibit entry of more than 5 persons at one time;
(iv) Large public gatherings are prohibited.
a) For marriage related gatherings, number of guests to not exceed 50.
b) For funeral related gatherings, number of persons to not exceed 20.
(v) Spitting in public places is punishable with fine as prescribed by the local authorities;
(vi) Consumption of liquor, paan, gutka, tobacco etc in public places is prohibited.
(vii) Workplace directives:
a) Work from home to be practised to the extent possible;
b) Staggering of work/ business hours to be followed in workplaces, shops, offices, markets, industrial and commercial establishments;
c) Provision of thermal screening, sanitizer, hand wash to be made at all entry and exit points and common areas;
d) Frequent sanitization of all points which come into human contact to be ensured;
e) Practising of social distancing by workers is to be ensured by all persons in charge of workplaces.

Tags SOCIAL DISTANCING, UNLOCKDOWN

Unlockdown 1.0 – Telangana Guidelines

The government of Telangana vide its Order dated 31st May 2020 decided that in the areas outside the Containment Zones, the lockdown orders, which are currently in force, as per G.O. Ms. No. 68 dated 18th May 2020, shall stand extended till 7th June 2020 with the following modifications:

a) Restriction on movement of persons (other than for accessing emergency medical care) shall apply from 9 p.m. to 5 a.m.

b) No shops/establishments, except hospitals and pharmacies, will remain open after 8 p.m.

c) There shall be no restriction on inter-state movement of persons. No separate permission will be required for such movements.

In respect of Containment Zones, provisions of lockdown order, which are currently in force as per G.O. Ms. No. 68 dated 18th May 2020, shall stand extended till 30th June 2020.

The G.O. Ms. No. 68 dated 18th May 2020, inter alia, provided the following:

A. The following activities shall be permitted:

(i) Intra-state movement of buses and other passenger vehicles is permitted, except in GHMC area.

(ii) Restaurants will be permitted to operate for take away/home delivery only.

(iii) Barber shops, spas, and saloons are permitted to open with strict safety measures like masks, gloves, distancing, regular cleaning with disinfectant.

(iv) Taxis, cab aggregators and auto rickshaws shall be permitted to operate. However, taxis and cabs shall take a maximum of three passengers excluding the driver and auto-rickshaws shall take maximum two passengers in addition to the driver. They shall, however, maintain proper sanitation and both the passengers and the driver shall wear masks. Restriction on pillion riders on two wheelers is relaxed.

(v) All shops are permitted to be opened. However, in GHMC area, all shops will function on alternate days in such a way that no two adjacent shops shall remain open on the same day.

(vi) E-commerce shall be permitted for all commodities.

(vii) Marriage related gathering shall ensure social distancing, and the maximum number of guests allowed shall not be more than 50.

(viii) Funeral/last-rites related gathering shall ensure social distancing, and the maximum numbers allowed shall not be more than 20.

B. The following activities shall continue to be strictly prohibited:

(i) Domestic and international air travel of passengers.

(ii) Metro rail services.

(iii) Inter-state movement of buses and other passenger vehicles.

(iv) Passenger train operations except special trains for stranded persons.

(v) All schools, colleges, educational/coaching/training institutes, etc.

(vi) Hospitality services like hotels, lodges, etc. except those accommodating health, police, government functionaries and stranded persons etc.

(vii) Bars, pubs, cinema halls, theatres, shopping malls, gyms, swimming pools, sports complexes, amusement and zoo parks, museums, auditoriums, etc.

(viii) All gatherings such as for social, political, sports, entertainment, academic and cultural purposes etc.

(ix) All religious places and places of worship etc. for public, all religious congregations.

C. Night curfew shall continue to be in place, i.e. no movement of any persons shall be permitted for any purpose other than accessing emergency medical care during the period from 7 p.m. to 7 a.m.

D. Inter-state movement of all types of goods/cargo including empty trucks shall be permitted.

E. All industries and construction activities shall be permitted in all areas.

F. All private offices and government offices shall function without any restrictions. They shall, however, follow the SOP issued for running of offices.

G. All shops, establishments and offices shall follow regular sanitation measures, ensure use of masks by one and all, proper distancing and avoid crowding to ensure that there is no spread of the coronavirus.

H. Containment zones shall be identified as per norms and strict perimeter control shall be ensured so that there is no movement of people in and out of these areas except for medical emergencies and maintaining supply of essential goods and services.

I. Persons above 65 years of age, persons with co-morbidity, pregnant women and children below the age of 10 years, shall stay at home, except for essential and health purposes.

The order, further stated that all the restrictions prescribed in G.O.Ms.No.64, dated 7th May 2020 shall continue to be in force unless specifically modified by G.O. Ms. No. 68 dated 18th May 2020.

Tags SOCIAL DISTANCING, UNLOCKDOWN

Unlockdown 1.0 – Karnataka Guidelines

Pursuant to the order issued by the Ministry of Home Affairs (“MHA”), Government of India bearing No. 40-3/2020-DM-I(A) dated 17 May 2020 on extension of lockdown till 31 May 2020 and guidelines on lockdown measures, the Karnataka State Government vide order No. RD 158 TNR 2020, dated 18 May 2020 issued guidelines on lockdown measures to contain the spread of COVID-19 in the state of Karnataka which was in force from 18 May 2020 to 31 May 2020. A brief overview of the said order issued by the Karnataka State Government can be accessed here.

Subsequently, the Ministry of Home Affairs, Government of India issued an order dated 30 May 2020 bearing No. 40-3/2020-DM-I(A) (“Order”) on the extension of lockdown in the containment zones upto 30 June 2020 and on re-opening of prohibited activities in a phased manner in areas outside containment zones. The guidelines on lockdown measures shall remain in force upto 30 June 2020.

Pursuant to the said Order and in exercise of the powers conferred under the Disaster Management Act, 2005, the Karnataka State Government has issued updated guidelines dated 30 May 2020 vide order no. RD 158 TNR 2020, on the lockdown measures which will come into effect immediately and be valid till 30 June 2020 (“Karnataka Order”). The Karnataka Order can be accessed here.

1. Phased re-opening of areas outside Containment Zones:

The Karnataka Order primarily permits all activities in areas outside Containment Zones. However, certain specific activities are permitted subject to the Standing Operating Procedures (“SOPs”) that are to be prescribed by the Ministry of Health and Family Welfare (“MoHFW”). These specific activities are proposed to be permitted in three phases:

(i) Phase I:

The Karnataka Order allows the following activities from 08 June 2020 onwards:

(a) Religious places/places of worship;

(b) Hotels, restaurants and hospitality services; and

(ii) Phase II:

Schools, colleges, educational/ training/ coaching institutions etc. are proposed to be opened after consultations with parents and other stakeholders. Based on such discussions, a decision in this regard is proposed to be taken in the month of July 2020.

(iii) Phase III:

Dates for resuming the following activities is proposed to be decided based on evaluation of the extent of spread and containment of the situation:

(a) International air travel of passengers, except as permitted by MHA;

(b) Metro Rail;

(d) Social, political, sports, entertainment, academic, cultural, religious functions and other large congregations.

2. National Directives for COVID-19 Management:

The National Directives for COVID-19 Management, as annexed to the Karnataka Order in its Annexure I shall continue to be followed throughout the State.

(a) Compulsory wearing of face cover in public places, workplaces and during transport. In the event of any non-compliance in this regard, a fine of INR 100 in rural areas and INR 200 in urban areas shall be imposed;

(b) Maintenance of minimum distance of 6 feet in public places;

(d) Large public gatherings are prohibited.

(e) For marriage related gatherings, number of guests to not exceed 50.

(f) For funeral related gatherings, number of persons to not exceed 20.

(g) Spitting in public places is punishable with fine as prescribed by the local authorities;

(h) Consumption of liquor, paan, gutka, tobacco etc. in public places is prohibited.

(i) Workplace directives:

i. Work from home to be practiced to the extent possible;

ii. Staggering of work/ business hours to be followed in workplaces, shops, offices, markets, industrial and commercial establishments;

iii. Provision of thermal screening, sanitizer, hand wash to be made at all entry and exit points and common areas;

iv. Frequent sanitization of all points which come into human contact to be ensured;

v. Practicing of social distancing by workers is to be ensured by all persons

in charge of workplaces.

3. Night Curfew:

Movement of individuals between 9.00pm and 5.00am shall continue to be prohibited throughout the State, except for essential activities. In this regard, the local authorities have been directed to issue orders in the entire area of their jurisdiction and ensure strict compliance.

4. Lockdown in Containment Zones:

(a) The Karnataka Order directs the District Authorities to demarcate the Containment Zones, on due consideration of the guidelines issued by the MoHFW, Government of Karnataka;

(b) It also imposes continuation of the lockdown in such containment zones until 30 June 2020;

(d) Strict perimeter control shall be imposed in such zones to ensure that there is no movement of people in and out of these zones, except for medical emergencies and maintenance of supply of essential goods and services. The Karnataka Order also stipulates intensive contact tracing, house-to-house surveillance, and other clinical interventions.

(e) District Authorities/ BBMP may also identify Buffer zones outside the Containment Zones, where new cases are likely to occur. Further, the Karnataka Order allows the District authorities to exercise their discretion to impose restrictions within such buffer zones.

5. Unrestricted Movement of Persons and goods:

(a) The Karnataka Order allows inter-State and intra-State movement of persons and goods without any restriction. No separate permission / approvals / e-permits will be required for any such movements.

(b) Based on its assessment of the situation on account of public health reasons, separate orders will be issued by the MoHFW, Government of Karnataka, regarding inter-state movement of persons to Karnataka.

(c) SOPs are required to be adhered to with respect to the movement of person by passenger train and Shramik special train, domestic passenger air travel, movement of Indian Nationals stranded outside the country and of specified persons to travel abroad, evacuation of foreign nationals, and sign-on & sign-off of Indian seafarers.

6. Protection of vulnerable persons:

Persons above 65 years of age, persons with co-morbidities, pregnant women and children below the age of 10 years are advised to stay at home, except for essential and health purposes.

7. Use of Aarogya Setu:

Employers should on best efforts basis, ensure that the Arogya Setu app is installed by all employees having compatible mobile phones. District authorities and BBMP may also advise individuals in this regard.

8. Strict implementation of the Order:

(a) The District Authorities/BBMP have been directed to not dilute the Order in any man;

(b) Further, all Deputy Commissioners/ Commissioners of BBMP have been directed to strictly enforce the measures mentioned above.

9. Penal Provision:

Any person violating these measures, shall be liable to be proceeded against as per the provisions of Section 51 to 60 of Disaster Management Act, 2005; besides legal action under Section 188 of Indian Penal Code and other applicable provisions.

Tags KARNATAKA, SOCIAL DISTANCING, UNLOCKDOWN

Unlockdown 1.0: Tamil Nadu Guidelines

On 31 May 2020, the government of Tamil Nadu, following the Guidelines issued by the Ministry of Home Affairs (MHA) on 30 May 2020, has extended the lockdown in the State till 30 June 2020 vide G.O. Ms. No. 262 (Order) pursuant to the Disaster Management Act, 2005.

Based on recommendations by expert team of Doctors and Public Health specialists, the State-wide lockdown was being extended by the government from time to time. The previous extension was from 17 May 2020 till 31 May 2020.

The Order provides for further relaxations and restrictions in addition to the G.O. Ms. No. 217 dated 03 May 2020 and the G.O. Ms. No. 245 dated 18 May 2020.

1. Prohibited activities:

The following activities will continue to be prohibited:

All religious places/ places of worship;
Religious congregations;
Tourist travel to Nilgiris, Kodaikanal and Yercaud districts;
Hotels, restaurants and other hospitality services except those meant for housing health/ police/ Government officials/ healthcare workers/ stranded persons including tourists and for quarantine facilities;
Shopping malls;
Schools, colleges, educational/ training/ coaching institutions etc. Online/ distance learning shall continue to be permitted and shall be encouraged;
All international air travel of passengers except as permitted by MHA;
Metro rail and sub-urban rail services;
Cinema halls, gymnasiums, swimming pools, entertainment parks, theatres, bars, auditoriums, assembly halls and similar places. Sports complexes and stadia are permitted to be open without spectators;
All social, political, sports, entertainment, academic, cultural, religious functions, other large gatherings and congregations;
Inter-State public transport.

2. No activities are permitted in the Containment Zones under the Order.

3. Permitted activities:

(i) In areas falling under the jurisdiction of Greater Chennai Police (except Containment Zones):

IT/ ITEs are permitted to operate with company provided transport at 20% strength subject to a maximum of 40 persons;
All Private offices are allowed to function at 50% strength. However, work form home is to be encouraged as much as possible;
All showrooms and large format shops (including jewellery and textile shops) except in shopping malls are permitted to operate with 50% staff strength without air conditioning and limiting the number of customers to five at a time to ensure social distancing;
Restaurants shall be permitted to function with effect from 8 June 2020 with dine-in facilities with 50% of seating capacity maintaining social distancing. Air conditioning shall not be used;
Tea shops are permitted to function with effect from 8 June 2020 with 50% of seating capacity to maintain social distancing;
Tea shops and restaurants (parcel alone till 7 June 2020), vegetable shops and provision shops are permitted to function from 6 a.m. to 8 p.m.;
Liquor retail vending (TASMAC) shops to continue to remain closed until further orders; Rental vehicles and taxis including cab aggregation are permitted with not more than 3 passengers, excluding driver;
Autos and cycle rickshaws are permitted with 2 passengers, excluding driver;
Barber shops, saloons, spa and beauty parlours are permitted to function, without using air conditioning facility.

(ii) In all areas across the State except for areas under the jurisdiction of Greater Chennai Police and except in containment zones:

All industries are permitted to operate with 100% of employees;
IT/ ITEs are permitted to operate at 100% strength with at least 20% working from home;
All Private offices are allowed to function at 100% strength. However, work form home is to be encouraged as much as possible;
All showrooms and large format shops (including jewellery and textile shops) except in shopping malls are permitted to operate with 50% staff strength without air conditioning and limiting the number of customers to five at a time to ensure social distancing;
Restaurants shall be permitted to function with effect from 8 June 2020 with dine-in facilities with 50% of seating capacity maintaining social distancing. Air conditioning shall not be used;
Tea shops are permitted to function with effect from 8 June 2020 with 50% of seating capacity to maintain social distancing;
Tea shops and restaurants (parcel alone till 7 June 2020), vegetable shops and provision shops are permitted to function from 6 a.m. to 8 p.m.;
Other shops including liquor retail vending (TASMAC) shops are permitted to function from 10 a.m. to 8 p.m.;
Delivery of all goods, including non-essentials goods through e-commerce is permitted; Rental vehicles and taxis including cab aggregation are permitted with not more than 3 passengers, excluding driver;
Autos and cycle rickshaws are permitted with 2 passengers, excluding driver;
Public transport is permitted through Government and Private Buses subject to conditions as prescribed in Annexure I. The State of Tamil Nadu has been divided into 8 different zones for this purpose.

4. Movement of Persons:

All inter-district movements within respective zones and intra-district movement within Greater Chennai Police jurisdiction will be permitted without e-pass;
Inter-State movement and movement from one zone to another zone shall continue with current pass system;
Residents welfare associations/ building societies/ associations shall adopt necessary and appropriate safety measures to prevent the spread of COVID-19 which may include appropriate safeguards and regulations of the entry of outside persons including domestic workers and vendors to their buildings/ complexes;
All industrial and commercial establishments shall encourage their employees/ workers to work from home.

The Order also prescribes for the strict adherence of the National Directives for COVID-19 Management, as prescribed by the MHA.

Tags SOCIAL DISTANCING, TAMIL NADU, UNLOCKDOWN

Relaxation to Minimum Public Shareholding Requirements

Background

The Securities and Exchange Board of India (“SEBI”) has, after taking into consideration requests received from listed entities and industry bodies as well as considering the prevailing business and market conditions, decided to grant relaxation from the applicability of the circular dated October 10, 2017 (Circular No. CFD/CMD/CIR/P/2017/115) on the actions to be taken in case of non-compliance of the minimum public shareholding (“MPS”) requirements.

What is minimum public shareholding?

In terms of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”) read with Regulation 28 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (“Listing Regulations”), listed companies are required to maintain public shareholding of at least 25%. The obligation to reach and maintain this MPS threshold of 25% is attracted in three separate instances:

(a) Initial listing – In terms of Rule 19(2)(b) of the SCRR, the minimum offer and allotment to public in terms of an offer document by a company seeking listing, has to be within the range of at least 10% to at least 25%, subject to the post-issue market capitalisation of the listed company. If the post-issue market capitalisation of the listed company is more than Rs. 1,600 crores, the listed entity has the option, but not obligation, to offer and allot less than 25% of its capital to the public. The relaxation of issuing less than 25% of its capital to the public is available subject to the listed entity meeting the MPS threshold of 25% within a period of three years from the date of listing of its securities;

(b) Continuous listing – In terms of Rule 19A of the SCRR, every listed company, other than a public sector company, is required to maintain the MPS threshold of at least 25%. In case of a public sector company which has public shareholding below 25% on the commencement of the Securities Contracts (Regulation) (Second Amendment) Rules, 2018, a period of two years has been provided from the date of such commencement to restore the MPS to 25%. For companies covered under (a) above, the obligation to maintain MPS initiates from the date upon which the threshold of 25% MPS is first achieved.

(c) Violation of continuous listing – In the event that a listed entity, other than a public sector company, breaches the MPS threshold of 25%, it is required to bring back MPS threshold to 25% within a period of 12 months from the date of the breach of the threshold. For public sector companies, a two-year window is provided to restore the MPS threshold to 25%. Further, a three-year time period is provided to listed companies for restitution of the MPS threshold for breaches caused by issue of depository receipts or implementation of a resolution plan under Section 31 of the Insolvency and Bankruptcy Code, 2016.

Non-compliance of the MPS requirements

In terms of Regulation 97 of the Listing Regulations, a recognized stock exchange is charged with the duty to monitor compliance with the provisions of the Listing Regulations. Further, Regulation 98 of the Listing Regulations provides for penal actions that may be undertaken by stock exchanges in case of failure to comply with the provisions of the Listing Regulations, including the requirement to maintain MPS threshold. Towards this end, SEBI issued a circular dated October 10, 2017 (Circular No. CFD/CMD/CIR/P/2017/115), directing stock exchanges to review compliance with MPS requirements based on shareholding pattern/ other filings made with them by the listed entities from time to time and within fifteen days from date of observation of non-compliance, to issue notices to such entities intimating all actions taken/ being taken as per this circular and advise the entities to ensure compliance. On observing non-compliance, the recognised stock exchanges may take actions such as (i) levying of a fine against the listed entities for each day of non-compliance; (ii) freezing the entire shareholding of the promoters and promoter group in conjunction with depositories; (iii) freezing of all securities held in the dematerialized beneficial ownership accounts of the promoters and promoter group; and (iv) banning the promoters, promoter group and directors from taking up any new position as director of a listed entity. The recognised stock exchange may also consider compulsory delisting of the non-compliant listed entity.

Manner of achieving MPS

SEBI has by way of a circular dated November 30, 2015 (Circular No. CIR/CFD/CMD/14/2015) provided the mechanisms through which a listed entity may achieve compliance with MPS threshold. The approved mechanisms include (a) issue of fresh shares to public through prospectus (further public offering); (b) offer for sale of shares by promoters to public through prospectus (further public offering); (c) sale of shares by promoters through the stock exchange offer-for-sale mechanism; (d) offer for sale of shares by promoters by way of a qualified institutions placement; (e) rights issues with the promoters and/or members of the promoter group forgoing their entitlement; and (f) bonus issues with the promoters and/or members of the promoter group forgoing their entitlement. Mechanisms not specifically set out in this circular or elsewhere under SEBI regulations, can also be utilised, subject to approval of SEBI.

Relaxation provided by SEBI

Given the current volatility in the markets, SEBI, in its recent circular dated May 14, 2020 (Circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/81) (the “Circular”) has provided a temporary relaxation to listed entities for whom the due date for complying with the minimum public shareholding fell within the time period of March 1, 2020 to August 31, 2020. SEBI has also advised recognized stock exchanges not to take any penal action as envisaged in the SEBI circular dated October 10, 2017 (Circular No. CFD/CMD/CIR/P/2017/115) against such entities in case of non-compliance during the said period. Penal actions, if any, initiated by stock exchanges from March 1, 2020 till May 14, 2020 for non-compliance of the MPS requirements by such listed entities may be withdrawn.

The Circular shall come into force immediately.

Please refer to the SEBI circular dated May 14, 2020 (Circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/81) for more details.

Tags Capital Markets, SEBI

Extension of lockdown till 31 May 2020 in Tamil Nadu

The government of Tamil Nadu had taken several first hand measures since January 2020 with a view to contain the spread of Covid-19. Between the period of January to March 2020, the government had sanctioned essential medicines worth Rs. 146 crores, 21 lakh protective gears, 1.45 crore face masks and 24 lakh N95 masks. The World Health Organization declared Covid-19 as a pandemic, following which the government has undertaken several measures under the Tamil Nadu Public Health Act, 1939 and the Epidemic Diseases Act, 1897 in order to curtail the spread of this disease.

In pursuance of the disaster management laws as applicable in Tamil Nadu, the Tamil Nadu government decided to extend the lock down from 17 May 2020 till 31 May 2020 (12.00 midnight), under the below mentioned guidelines/conditions (“Lock Down Period”). The circular can be accessed here.

Existing restrictions for the below mentioned operations shall stand unaltered until further notification:

Functioning of schools, colleges, training institutes, research institutes.
Public gatherings in places of worship and religious centers.
Cinema halls, amusement parks, bars, gymnasiums, beach, tourist spots, parks, museums, swimming pools, stadiums, auditoriums.
All types of religious, social, political, entertainment, educational, sports, cultural gathering and processions.
Public travel via air, trains, buses including inter-state trains and bus travels shall remain prohibited. (Special flights, trains and public transport with exclusive permission from the centre/state government shall be permitted)
Taxis, autos, cycle rickshaws.
Metro trains and electric trains.
Guest houses (excluding for employees’ accommodation), hotels, resorts.
Funeral procession with not more than 20 persons.
Weddings upon adherence to existing directions.

The restrictions already in place are as follows:

The 12 districts of Chennai, Kanchipuram, Thiruvallur, Chengalpattu, Vizhupuram, Kadalur, Ranipet, Thirupatthur, Kallakuruchi, Thiruvannamalai, Ariyalur and Perambalur shall continue to function under the existing restrictions without any relaxations.
Tourists shall not be allowed to visit the tourist areas of Nilgiris, Kodaikanal and Yercaud.
The lockdown shall function without any relaxations at the Containment Zones.
Apart from the Containment Zones in the Greater Chennai Police limits, all other activities as permitted under the existing list of permitted activities shall continue to be allowed.
Except in the containment zones within the limits of the Greater Chennai Police and the containment zones within the other parts of the state of Tamil Nadu, all other activities as permitted under the existing list of permitted activities shall continue to be allowed.

New restrictions:

As a measure to ease restrictions step by step and in accordance with the advice of the High Level Committee the following relaxations have been introduced:

The following relaxations shall be applicable in the districts of Coimbatore, Salem, Erode, Thiruppur, Namakkal, Karur, Thirunelveli, Thuthukudi, Thenkasi, Kanniyakumari, Theni, Madhurai, Sivaganga, Viruthunagar, Ramanathapuram, Dindugal, Pudhukottai, Trichy, Thiruvaroor, Tanjore, Nagapattinam, Dharmapuri, Krishnagiri, Vellore and Nilgiris:

Intra-state transportation shall be allowed without TN e-Pass.
In order to prevent the spread of the virus, the public is requested to use the transportation facilities for the purposes of the permitted activities and essential services alone.
TN e-pass shall continue to be availed for all inter-state movement.
Government and private buses that ply for the transportation of government and private employees shall carry upto 20 persons, vans shall carry upto 7 persons, SUVs and cars such as Innova shall carry upto 3 persons, small cars shall carry upto 2 persons (apart from the driver).
Taxis and rented vehicles that function for the purposes of essential services, businesses, healthcare etc. within these 25 districts shall do so without availing TN e-pass. Public should avoid venturing out of their houses unless absolutely required to do so.

The National Rural Employment Guarantee Act – The existing limit of 50% workers shall be extended to 100%.
Apart from the areas within the Greater Chennai Police limits, all the State Municipal Corporations, Municipalities and Town Panchayats shall have further relaxations in terms of the number of workers as follows : (i) Establishments employing less than 100 workers shall function with 100% capacity. (ii) Establishments employing more than 100 workers shall work with a maximum capacity of 50% of its workforce or with atleast 100 workers.
Establishments that have been closed down as a result of the lockdown shall function for the purposes of essential general maintenance with a limited number of workers.
Evaluation of the answer sheets pertaining to Class XII Public (Board) Examination is permitted.
Training for national and international games under an individual trainer is permitted. Permission shall be obtained for the same from the chief of district administration and the Municipal Commissioner of Chennai.
Among the 12 districts where transportation is not permitted, taxis, autos that are used for medical purposes shall be allowed.

General guidelines:

All district collectors and Municipal Commissioners are advised to wear masks, follow social distancing, sanitize their hands at frequent intervals, use disinfectants, ensure safety of workers and ensure strict implementation of the Standing Operating Procedures.
The State Government of Tamil Nadu is strictly monitoring the spread of the disease. The government shall come out with further relaxations as the spread decreases.
Through the 10 special flights under the ‘Vande Bharath’ scheme of the Central Government, 1665 people belonging to Tamil Nadu have been brought back to the country and 264 people have returned through 2 ships.
Steps are being taken to bring back persons struggling to return to Tamil Nadu from other states.
2 special Rajdhani trains have arrived at Tamil Nadu from New Delhi this week. Similarly, the government shall undertake measures to ensure that these trains ply for two days in a week with the permission of the Central Government.

Tags LOCKDOWN, SOCIAL DISTANCING, TAMIL NADU

Karnataka Lockdown Extension Order

Pursuant to the updated order issued by the Ministry of Home Affairs, Government of India dated May 17, 2020 bearing No. 40-3/2020-DM-I(A) (“Order”) with the new guidelines on the measures to be taken by Ministries / Department of Government of India / states and state authorities for containing the spread of COVID-19, the Karnataka state government has issued updated guidelines on the measures to be taken for containing the spread of COVID-19 which will come into effect immediately and be valid till May 31, 2020 (“Karnataka Order”). The Karnataka Order can be accessed here.

Below is a brief overview of the Karnataka Order, in addition to those set out by the Order:

1. Permitted Activities

In all zones areas except containment zones, taxis/autorickshaws (with a maximum of 2 (two) passengers excluding the driver), maxi cabs and aggregators will be permitted to ply with restrictions.
Barber shops, saloons and spas will be permitted to operate subject to the standard operating procedure prescribed by the Ministry of Health and Family Welfare.
Government and municipal parks will be open to the public between specified times subject to restrictions.

2. Curfew: Sundays will be full day lockdown, that is, on Sundays no movement will be permitted from 7AM to 7PM in addition to the 7PM to 7AM curfew, except for essential activities.

3. Demarcation of Zones: The Department of Health and Family Welfare, Government of Karnataka will demarcate taluks/wards into red, orange and green zones only for the purpose of monitoring and will not impose any additional restrictions to the activities permitted under these guidelines.

Tags KARNATAKA, LOCKDOWN

Economic Stimulus Package – May 2020

The Finance Minister, Government of India, announced a 5-part economic stimulus package from 13-17 May 2020, as part of the Atmanirbhar Bharat programme.

The incentives announced in each tranche of the stimulus package are as below:

Summary of incentives – Tranche 1

Summary of incentives – Tranche 2

Summary of incentives – Tranche 3

Summary of incentives – Tranche 4

Summary of incentives – Tranche 5

Please note that where statutory reforms have been announced, the relevant amendment bills/ordinances are awaited.