Special Exemptions to Listed Entities – SEBI Regulations, 2015

Special Exemptions to Listed Entities – SEBI Regulations, 2015, To promote the listed entitles, SEBI has made some exemptions which are available to the listed entities via SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, which is being notified on 2nd September, 2015. This exemptions would be available to the listed entities with effect from 1st December, 2015. It should be noted this exemptions are not available to all entities but to some entities which fulfilled the conditions which are mentioned in the article. Now check more details regarding “Special Exemptions to Listed Entities – SEBI Regulations, 2015” from below….

Special Exemptions to Listed Entities

Exemptions Available under Chapter 4 of SEBI Regulations:

Under this chapter, there are exemptions available under this chapter which would be available to the some of the entities which would fulfil the following:

  1. Having Paid up Share Capital of Rs. 10 Crores or less.
  2. Net Worth of Rs. 25 Crores or less.
  3. Listed on Stock exchange.

If the regulations become applicable at the later stage of the financial year, than the regulations would be required to be complied within 6 months from the date of regulations become applicable.

Regulation Details
  • No necessary requirement of at least 1 women director.
  • No requirement of 50% of BOD as non-executive directors.
  • No compulsory periodic review required.
  • No compulsion to review performance of independent directors.
  • No requirement of information to BOD for risk assessment.
  • No need to produce code of conduct to members.
  • No requirement of Compliance certificate for matters as specified in Schedule II of this regulation.
  • No requirement of at least ½ of BOD as independent directors incise of non-executive chairperson.
18 Some relaxation in constitution of Audit Committee
19 Some relaxation in constitution of Remuneration Committee
20 Some relaxation in constitution of Stakeholders Relationship Committee
21 Some relaxation in constitution of Risk Management Committee
22 Some relaxation in formation of mechanism to report to directors
  • Do not need to worry for entering into transactions with related party
  • No need to form any policy for materiality of related party transactions
  • No requirement for approval of shareholders for related party transactions.
  • All prior contracts contracts with related parties can be continued with.
  • Voting can also be done by related party but only if the point of voting is not related to the party.
  • Minutes of meetings of subsidiaries would not be compulsory to be kept
  • No compulsion of appointing at least 1 director as the independent director for the director in subsidiaries
  • No requirement of bringing statement of significant transaction of unlisted subsidiary.
25 No compulsion to hold 1 meeting in a year of independent directors.
26 No need to check whether the compliance is properly done or not and in compliance with code of conduct or not
27 No requirement to disclose the half-yearly financial performance. No compulsion on submission of quarterly compliance report.

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