The Ministry of Home Affairs (MHA) vide order dated April 15 2020  (  Here )   laid out the list of permitted activities allowed during the lockdown period and these have been amended from time to time. More recently, the MHA order on May 1, 2020 extended the lockdown for a period of two weeks with effect from May 4, 2020 and issued new guidelines based on risk profiling of the districts into Red (Hotspot) , Green and Orange Zones ( MHA Order ).  It is to be noted that all activities that have not been expressly prohibited/permitted with restrictions in the various zones as under shall be considered as permitted activities. Enumerated below are the consolidated list of activities   permitted as on May 5 2020.               I.   Permitted Movement of Transport and Persons (Irrespective of the Zones) Domestic and International Air Travel of passengers only for  security purposes Pass...

In view of the COVID-19 pandemic, the Securities and Exchange Board of India (SEBI), vide its press release no. 24/2020 dated April 27, 2020, (Press Release), has decided to reduce broker turnover fees and filing fees on offer documents for Public issue, Rights issue and Buyback of shares. By way of this Press Release, SEBI has decided that the broker turnover fee will be reduced to 50% of the existing fee structure for the period June 2020 to March 2021. The benefit of this reduction in fees will automatically be passed on to the investors as well. Further, filing fees on offer documents for Public issue, Rights issue and Buyback of shares will be reduced to 50% of the existing fee structure. This will be effective for documents filed from June 1, 2020 to December 31, 2020. While the above development is based on a press release issued by SEBI, we anticipate that in due course of time, a detailed circular may be issued by SEBI for amending the relevant provisions of the ap...

In a welcome move, on 19 April 2020 the Competition Commission of India ( CCI ), issued an Advisory to businesses operating in the times of COVID-19 ( Advisory ). Taking cognizance of the disruption in supply chains caused by the pandemic, especially in healthcare and essential products/ services, the CCI acknowledged that there is a legitimate reason for businesses to collaborate and coordinate to ensure supply and fair distribution of products/ services including medical and healthcare products such as ventilators, face masks, gloves, vaccines, etc. and essential commodities. Such collaboration includes sharing data on stock levels, timings of operations, sharing distribution networks, transport logistics, research and development, production, etc.  Without committing to any specific relaxations or providing additional safe harbour, the CCI has stressed upon the fact that the Competition Act, 2002 ( Act ) already h as in-built safeguards to protect businesses from sanction...

Today, I had enquired about the status of Coronavirus in Tamil Nadu. In villages, the spread of Coronavirus has been controlled to a certain extent. However, in urban areas especially which are densely populated, the chances of the virus spread are high. On having discussions with doctors and experts from the public health department, I have been informed that stringent lockdown measures are required in urban areas (namely Chennai, Coimbatore and Madurai). So, the Tamil Nadu Government has taken the following decisions by exercising its powers under Disaster Management Act, 2005.    There shall be complete lockdown: In Chennai, Coimbatore and Madurai corporation limits from 26.04.2020 - 6.00 AM  to 29.04.2020 - 9.00PM In Tiruppur and Salem corporation limits from 26.04.2020 - 6.00 AM  to 28.04.2020 - 9.00PM  ( Lockdown Period ) In the aforesaid Lockdown Period, the following essentials service shall alone be permitted: Hospitals...

In view of the COVID-19 pandemic and nation-wide lockdown and with a view to improving access to funding to corporates through capital markets, the Securities and Exchange Board of India (SEBI), by way of press release dated April 21, 2020, bearing no. PR No.23/2020, has granted certain temporary relaxations from compliance with certain provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, (SEBI ICDR Regulations) related to rights / public issuances by listed entities. Pursuant to the press release, SEBI has notified two circulars dated April 21, 2020, each for (i) relaxations to issuers from  certain  provisions  of  the SEBI  ICDR Regulations in respect of rights issue; and (ii) one-time relaxation to issuers with respect to validity of SEBI observations. The contents of the circulars are as follows: (i)            Relaxations to issuers from  certain...

Given the prevailing uncertainty due to the COVID-19 pandemic and the nation-wide lockdown, it has been represented by various stakeholders to the Securities and Exchange Board of India (SEBI) that the timelines of Phase II of Unified Payments Interface with Application Supported by Blocked Amount (UPI ASBA), which was originally only until March 31, 2020, as mentioned by SEBI in its circular dated November 8, 2019,   (circular no. SEBI/HO/CFD/DCR2/CIR/P/2019/133) may be continued at present. It has been stated by the stakeholders that the systems and processes for achieving Phase III timelines of T+3 need to be further deliberated and finalized in light of the experience gained during one of the major IPOs that opened and closed in the first week of March 2020. Therefore, taking into account the representations made by the stakeholders and challenges that may be faced by them due prevailing COVID-19 pandemic, SEBI, vide its circular dated March 30, 2020, (circular no. ...

The impact of COVID-19 on domestic and international industries is severe, across all sectors. There are several legal issues that a company must face during the COVID-19 outbreak. One such legal issue is the occurrence of a force majeure event. A force majeure claim may protect a party from liability for its failure to perform its contractual obligation(s).  Manual for Procurement of Goods 2017 – Office Memorandum dated 19 February 2020  The Ministry of Finance (Department of Expenditure), vide its office memorandum  ( No. F.18/4/2020-PPD dated 19 February 2020 ), clarified that disruption of supply chains due to the spread of Coronavirus in China or any other country will be covered under the Force Majeure Clause (as defined in the  Manual for Procurement of Goods, 2017 ). Para 9.7.7 of the Manual for Procurement of Goods 2017 states the following with regard to the ‘Force Majeure Clause’: Force majeure is an extraordinary event/circumstance that is...

The Government of India has announced various additional relaxations for taxpayers under Customs Law and Goods and Services Tax (GST) in order to overcome the unprecedented hardships caused by the COVID-19 outbreak. In order to ensure smooth facilitation of trade, some practical difficulties have also been eased by way of circulars issued under Customs and GST law. (See also our earlier posts on relaxations under the Foreign Trade Policy , Customs laws , and GST ) We have summarised key takeaways from recent circulars below. 1. Acceptance of an undertaking in lieu of bonds: Circular No. 17/2020-Customs dated 3 April 2020 CBIC has clarified that an undertaking can be submitted in lieu of the bonds required to be filed for various purposes (such as provisional assessment, warehousing of goods etc.) under the Customs Act, 1962 (‘Customs Act’). This relaxation will apply to Government/public sector undertakings, manufacturer/actual user importer, authorised economic operators, st...

Further to the MCA circular dated April 08, 2020 issued in relation to passing of special and ordinary resolutions by companies under the provisions of Companies Act, 2013, the MCA is in receipt of representations from various stakeholders. Representations indicate the difficulties faced by them in the present circumstances, in serving and receiving the notices/responses by post. Considering the same and to give more clarity in terms of holding of EGM’s during the Covid 19 related social distancing norms and the lockdown for the period as indicated in the April 08, 2020 circular, or till such further orders, whichever is earlier, MCA has issued following clarifications: Considering the present circumstances, as per the provisions of rule 18 of the Companies (Management and Administration) Rules, 2014, the notice to the members may be given only via emails at the email id’s registered with the company or with the depository participant/depository. Companies...