COVID-19

LEGAL UPDATES

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Table of Contents

Contents Page

1 INTRODUCTION ..................................................................................................................... 1

2 Relaxations under the CA 2013 ........................................................................................... 3

3 Relaxations under the IBC ................................................................................................... 5

4 Relaxations granted by SEBI ............................................................................................... 6

4.1 Relaxations under the LODR ..................................................................................... 6

4.2 Relaxations under the Takeover Regulations .......................................................... 7

4.3 Relaxation for listing of NCDs/NCRPS/CPs ............................................................. 7

4.4 Relaxations for REITs and InvITs .............................................................................. 7

4.5 Relaxations for Mutual Funds, AIFs, VCFs and AMCs ............................................ 7

4.6 Relaxations for FPIs, portfolio managers and CRAs .............................................. 8

5 Relaxations granted by the RBI ........................................................................................... 9

6 Relaxations granted by IRDAI ............................................................................................ 10

7 CONCLUSION ...................................................................................................................... 10

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1 INTRODUCTION

1.1 As a measure to curb the spread of coronavirus, India is now under a lockdown for 21 days starting from

midnight of 24 March 2020. This means that other than essential services (like healthcare facilities, food

supply, banks, pharmacies, post, etc.) all offices, schools, colleges, malls, restaurants, etc. must mandatorily

remain closed for this period.

1.2 Recognizing that it is not possible to conduct business in the ordinary course, the Government of India and

various regulators have granted relaxations from filing and other requirements under various laws and

regulations.

1.3 We have set out below some of the material relaxations under the Companies Act, 2013 (“CA 2013”), the

Insolvency and Bankruptcy Code (“IBC”), the Reserve Bank of India (“RBI”) regulatory framework, various

regulations issued by the Securities and Exchange Board of India (“SEBI”) and the Insurance Regulatory

and Development Authority of India are set out below.

1.3.1 CA 2013

(i) Extension of timeline – The timeline for filing declaration for commencement of business, and

the due date for creation of debenture redemption reserve and deposit repayment reserve has

been extended.

(ii) Directors and board meetings – (a) the requirement for companies to have at least one director

resident in India and for independent directors to have at least one meeting in the absence of

non-independent directors has been relaxed; (b) the maximum permissible time gap between

two board meetings has been extended; and (c) a relaxation has been provided in the matters

which can be dealt with in board meetings held through video conference or other audio visual

means.

(iii) Introduction of the Companies Fresh Start Scheme, 2020 (“Company Scheme”) and

modification of the LLP Scheme, 2020 (“LLP Scheme”) for allowing waiver of late fees for any

delay in filing of any e-forms with the Registrar of Companies between 1 April 2020 and 30

September 2020.

(iv) Clarification that any funds spent on COVID-19 activities would be counted towards CSR

activity.

(v) The Companies (Auditor’s Report) Order, 2020 to now be enforced from 1 April 2020.

1.3.2 IBC

(i) The monetary threshold for default under the IBC has been increased to INR 1,00,00,000 (Indian

Rupees one crore).

(ii) The period of lockdown imposed by the Government of India shall not be counted for the

purposes of the timeline for any activity required to be done under the Insolvency and

Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations,

2016 (“CIRP Regulations”).

1.3.3 SEBI has provided the following relaxations:

(i) LODR – extension of the due dates for making various filings and disclosures under the SEBI

(Listing Obligations and Disclosure Requirements) Regulations, 2015 (“LODR”) (e.g.,

compliance certificate on share transfer facility, quarterly statement on investor complaints,

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annual secretarial compliance report, quarterly corporate governance report, shareholding

pattern, financial results, company secretary certificate on timely issuance of share certificates,

etc.);

(ii) annual general meeting – extension of the due date of the requirement under the LODR for the

top 100 listed companies by market capitalizations to hold the annual general meeting;

(iii) meetings of NRC and other committees – an extension of 3 months has been granted for

meeting the requirement under the LODR for the nomination and remuneration committee,

stakeholders relationship committee and risk management committee to hold at least one

meeting in a year;

(iv) an exemption has been granted from compliance of the requirement under the LODR of

publication of advertisements in newspapers for all events scheduled till 15 May 2020;

(v) the enforcement of the SEBI circular of 22 January 2020 on standard operating procedure on

imposition of fines and other enforcement actions for non-compliances under the LODR has

been extended;

(vi) disclosure of shareholding – extension of the due dates for making disclosures of shareholding

in listed companies by promoters and shareholders holding 25% or more shareholding/ voting

rights as per the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011

(“Takeover Regulations”);

(vii) extension of the date of issuance for non-convertible debentures (“NCDs”)/ non-convertible

redeemable preference shares (“NCRPS”)/ commercial papers (“CPs”) proposed to be listed on

or before 31 March 2020;

(viii) compliance by REITs and InvITs – extension of the due dates for making filings and disclosures

by Real Estate Investment Trusts (“REITs”) and Infrastructure Investment Trusts (“InvITs”)

under the SEBI (Real Estate Investment Trusts) Regulations, 2014 (“REIT Regulations”) and

the SEBI (Infrastructure Investment Trusts) Regulations, 2014 (“InvIT Regulations”);

(ix) mutual funds and AMCs – extension of the due dates for making filings and disclosures by

mutual funds under the SEBI (Mutual Funds) Regulations, 1996 (“MF Regulations”), extension

of one year for launching new mutual fund schemes and relaxation in access control measures

by asset management companies (“AMCs”);

(x) AIFs and VCFs – extension of the due dates for making regulatory filings by Alternative

Investment Funds (“AIFs”) and Venture Capital Funds (“VCFs”) under the SEBI (Alternative

Investment Funds) Regulations, 2012 (“AIF Regulations”);

(xi) extension of implementation of the Stewardship Code introduced by SEBI by its circular of 24

December 2019, for all mutual funds and all categories of AIFs;

(xii) FPIs – a relaxation has been provided in relation to the requirement under the SEBI (Foreign

Portfolio Investors) Regulations, 2019 (“FPI Regulations”) requiring applicant foreign portfolio

investors (“FPIs”) to submit original KYC documents or attested copies where originals are not

available;

(xiii) extension of timelines for monthly reporting to SEBI by portfolio managers, and extension of

implementation of the guidelines for portfolio managers issued by SEBI by its circular dated 13

February 2020; and

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(xiv) permitting credit rating agencies (“CRAs”) to not consider non-payment of principal/ interest or

any rescheduling of payment of debt obligation as a default. In addition, the timelines/ due dates

for filings/ disclosures required to be made by CRAs under the SEBI (Credit Rating Agencies)

Regulations, 1999 have been extended.

1.3.4 RBI – The RBI has permitted banks, all India financial institutions and non-banking financial companies

(together, the “Lending Institutions”):

(i) to declare a moratorium on payment of instalments falling due between 1 March 2020 to 31 May

2020 in relation to term loans and interest on working capital facilities availed of in the form of

cash credit or overdraft; and

(ii) to recalculate the drawing power of a borrower who has availed of working capital facilities in

the form of cash credit or overdraft and who is facing stress on its borrower account due to

COVD-19 by reducing the margins and/or by reassessing the working capital cycle until 31 May

2020.

The RBI has clarified that this will not lead to reclassification of assets in the books of the relevant

Lending Institution.

1.3.5 RBI – The RBI has granted an extension in the timeline for realisation of proceeds in relation to exports

of goods and services from India as required under the Foreign Exchange Management (Export of

Goods and Services) Regulations, 2015 (“Export Regulations”).

1.3.6 IRDAI – The IRDAI has granted the following relaxations:

(i) returns – extension of timeline for submitting monthly and quarterly returns by insurers and

insurance intermediaries;

(ii) extension to re-insurers for submission of their final re-insurance programme for the financial

year 2020-21; and

(iii) customers – grant of a grace period in payment of insurance premiums in relation to life/ health

insurance policies and continuation of current premium rates in respect of motor insurance

policies. A more detailed summary of these changes are set out in paragraphs 2 to 6 (both

inclusive) below.

2 Relaxations under the CA 2013

2.1 The following relaxations have been provided under the CA 2013:

2.1.1 Extension of timeline

CA 2013 section/ rule Requirement Relaxation

Declaration for

commencement of

business (Section 10A)

A company having a share capital which is

incorporated on or after 2 November 2018

cannot commence any business or exercise

any borrowing powers unless inter alia a

declaration is filed by a director within a period

of 180 days of the date of incorporation of the

company with the Registrar of Companies that

every subscriber to the memorandum has

paid the value of the shares agreed to be

The period of 180 days

available for filing the

declaration has been increased

to 360 days.

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CA 2013 section/ rule Requirement Relaxation

taken by him on the date of making of such

declaration.

Creation of debenture

redemption reserve

(Section 71 read with

Rule 18(7)(v) and

18(7)(vi) of the

Companies (Share

Capital and Debenture)

Rules, 2014)

Certain companies which have issued

secured debentures are required to invest by

30 April of each year at least 15% of the value

of debentures maturing in the next financial

year into prescribed investment options.

The due date for this

investment has been extended

to 30 June 2020.

Deposit payment

reserve (Section 73

read with Rule 13 of the

Companies

(Acceptance of

Deposits) Rules, 2014)

Companies which have accepted deposits

from the public or its members are required to

create a deposit repayment reserve by 30

April of each year of an amount equal to 20%

of the deposits maturing in the following

financial year.

The due date for creating this

reserve has been extended to

30 June 2020.

2.1.2 Directors and board meetings

CA 2013 section/ rule Requirement Relaxation

Director resident in

India (Section 149(3))

Every company is required to have at least

one director who is resident in India for at least

182 days in a financial year.

Exempted.

Meeting of

independent directors

(Section 149(8) read

with Schedule VI –

Code for Independent

Directors)

Independent directors of a company are

required to hold at least one meeting in a

financial year in the absence of the non-

independent directors.

Exempted.

Maximum time gap

between board

meetings (Section

173(1))

Board of directors of a company are required

to hold at least 4 meetings every year with not

more than 120 day gap between two

meetings.

The time gap of 120 days

between two board meetings

has been extended by 60 days

(i.e. total 180 days) for the next

two quarters i.e. till 30

September 2020.

Board matters which

can be dealt with via

video conference

(Sections 173, 177,

178 and 186 read with

Rule 4 of the

Companies (Meetings

The following matters cannot be dealt with in

a meeting of the board of directors of a

company through video conferencing or other

audio visual means:

approval of annual financial

statements;

approval of the Board’s report;

For the period beginning from

19 March 2020 and ending on

30 June 2020, these matters

may also be dealt with in a

board meeting through video

conference or other audio

visual means.

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of Board and its

Powers) Rules, 2014)

approval of the prospectus;

audit committee meetings for

consideration of financial statements

including consolidated financial

statements, if any, to be approved by

the Board under sub-section (1) of

section 134 of the Companies Act,

2013; and

approval of any matter relating to

amalgamation, merger, demerger,

acquisition and takeover.

2.2 The following relaxations have also been provided:

2.2.1 E-registry moratorium – The MCA has introduced the Companies Fresh Start Scheme, 2020 and has

modified the LLP Scheme, 2020 pursuant to which companies and limited liability partnerships may

regularize any historical defaults in filings regulatory e-forms required under the CA 2013. According

to these schemes, no late fees or penalties will be imposed for late filing of e-forms on the MCA21 e-

registry between 1 April 2020 and 30 September 2020 irrespective of the due date of filing the form.

However, the Company Scheme will not apply: (a) to companies which have applied for striking off or

obtaining dormant status or where action for striking off has already been initiated; (b) to companies

which have amalgamated into any other company; and/ or (c) in respect of e-forms for increase in

authorised share capital and charge creation/ satisfaction related e-forms. Similarly, the LLP Scheme

will also not apply to limited liability partnerships which have made applications for striking off.

2.2.2 Funds spent on COVID -19 activities – The MCA issued a notification on 23 March 2020 clarifying that

any funds spent by a company on various COVID-19 activities, including promotion of health care,

preventive health care and sanitation and disaster management and any contribution made to the PM

CARES Fund, would be counted towards the company’s CSR activity.

2.2.3 Disclosure of whistleblower complaints – The Companies (Auditor’s Report) Order, 2020 which

requires all companies to mandatorily disclose all whistleblower complaints to the auditor will now be

enforced in respect of audit of financial statements for financial years commencing on or after 1 April

2020 (instead of 1 April 2019).

3 Relaxations under the IBC

3.1 Minimum default threshold – The monetary threshold for default under the IBC is increased from INR

1,00,000 (Indian Rupees one lakh) to INR 1,00,00,000 (Indian Rupees one crore) to ensure protection for

MSMEs against forced insolvency.

3.2 Lockdown period excluded – The CIRP Regulations were amended on 29 March 2020 to provide that the

period of lockdown imposed by the Government of India will not be counted for the purposes of the timeline

for any activity that could not be completed due to such lockdown in relation to a corporate insolvency

resolution process.

3.3 Potential suspension of certain provisions – The Finance Minister announced on 24 March 2020 that if the

COVID-19 situation stays as is beyond 30 April 2020, the Government of India may consider suspending

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Sections 7, 9 and 10 of the IBC relating to initiation of corporate insolvency proceedings by financial creditors,

operational creditors and corporate applicants respectively, to avoid increasing insolvencies.

4 Relaxations granted by SEBI

4.1 Relaxations under the LODR

4.1.1 By its notifications of 19 March 2020, 23 March 2020 and 26 March 2020, SEBI has granted the

following relaxations in respect of compliances under the LODR:

Requirement Relaxation

Compliance certificate on

share transfer facility

(Regulation 7(3))

The due date for filing the half-yearly compliance certificate on share transfer

facility has been extended from 30 April 2020 to 31 May 2020.

Statement of investor

complaints (Regulation

13(3))

The due date for filing the quarterly statement of investor complaints has

been extended from 21 April 2020 to 15 May 2020.

Meetings of committees

(Regulations 19(3A), 20

(3A) and 21 (3A))

An extension of 3 months has been granted for meeting the requirement of

holding at least one meeting a year of the nomination and remuneration

committee, stakeholders’ relationship committee and risk management

committee. This requirement can now be met by 30 June 2020.

Secretarial compliance

report (Regulation 24A

read with circular dated 8

February 2019)

The due date for filing the annual secretarial compliance report has been

extended from 30 May 2020 to 30 June 2020.

Corporate governance

report (Regulation 27(2))

The due date for filing the quarterly corporate governance report has been

extended from 15 April 2020 to 15 May 2020.

Shareholding pattern

(Regulation 31)

The due date for filing the quarterly shareholding pattern has been extended

from 21 April 2020 to 15 May 2020.

Quarterly/ Annual financial

results (Regulation 33)

The due date for filing the quarterly financial results has been extended from

15 May 2020 to 30 June 2020.

The due date for filing the annual financial results has been extended from

30 May 2020 to 30 June 2020

Certificate on issuance of

share certificates

(Regulation 40(9))

The due date for filing the certificate from a practicing company secretary on

timely issuance of share certificates has been extended from 30 April 2020

to 31 May 2020.

Exemption for publication

of advertisements

(Regulation 47)

The requirement of publishing information such as notice of the board

meeting, financial results etc., in the newspapers has been exempted for all

events scheduled till May 15, 2020.

Holding AGMs of top 100

listed companies

(Regulation 44(5))

The due date for holding the annual general meetings of the top 100 listed

companies by market capitalization (determined as of 31 March of each

financial year) has been extended from 31 August 2020 to 30 September

2020.

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Requirement Relaxation

Half-yearly/ annual

financial results

(Regulations 52(1) and

52(2))

The due date for filing the half yearly financial results of companies which

have issued listed NCDs/ NCRPS/ CPs has been extended from 15 May

2020 to 30 June 2020.

The due date for filing the annual financial results of companies which have

issued listed NCDs/ NCRPS/ CPs has been extended from 30 May 2020 to

30 June 2020.

Large corporate-initial and

annual disclosure (SEBI

Circular

HO/DDHS/CIR/P/2018/144

dated 26 November 2018)

The due date for filing the yearly large corporate-initial disclosure has been

extended from 30 April 2020 to 15 May 2020.

The due date for filing the yearly large corporate-annual disclosure has been

extended from 15 May 2020 to 30 June 2020.

4.1.2 Enforcement of circular on SoP for imposition of fines and other enforcement actions

By its circular of 22 January 2020, SEBI issued the standard operating procedure on imposition of

fines and other enforcement actions for non-compliances with provisions of the LODR. The effective

date of operation of this circular has been extended and it will not apply for compliance periods ending

on or after 30 June 2020 (as opposed to 31 March 2020).

4.2 Relaxations under the Takeover Regulations

As per regulations 30(1) and 30(2) of the Takeover Regulations, every person who (together with persons

acting in concert) holds 25% or more of shares or voting rights in a target company and the promoter of every

company (together with persons acting in concert) are required to disclose their aggregate shareholding and

voting rights held in a listed company as of 31 March of each year. In addition, as per regulation 31(4) of the

Takeover Regulations, the promoter of every company (together with persons acting in concert) is required

to declare that on a yearly basis that he has not made any encumbrance on the shares held by him, directly

or indirectly, other than those already disclosed during the financial year. The due date for making this

disclosures/ declaration in relation to the financial year ending 31 March 2020 has been extended to 1 June

2020.

4.3 Relaxation for listing of NCDs/NCRPS/CPs

As per the relevant SEBI circulars, companies proposing to a make public issue of NCDs, NCRPs or CPs

are required to submit their audited financials which are not older than 6 months from the date of issuance.

By its notification of 23 March 2020, SEBI has permitted companies proposing to list their NCDs/ NCRPs/

CPs on or before 31 March 2020 to extend the date of issuance to 31 May 2020. These companies have

also been permitted to submit audited financial statements as on 30 September 2019, although the

requirement is that the audited financial statements must not be older than 6 months from the date of

issuance.

4.4 Relaxations for REITs and InvITs

By its notification of 23 March 2020, SEBI has extended the due dates for all regulatory filings and

compliances for REITs and InvITs for the period ending 31 March 2020 by one month over and above the

timelines prescribed under the REIT Regulations and the InvIT Regulations and the circulars issued

thereunder.

4.5 Relaxations for Mutual Funds, AIFs, VCFs and AMCs

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4.5.1 Mutual Funds – By its notification of 23 March 2020, SEBI has granted the following relaxations in

respect of compliances under the MF Regulations and the circulars issued thereunder:

(i) half yearly unaudited financial statements – the due date for filing the half yearly unaudited

financial results (Regulation 59) has been extended from 30 April 2020 to 31 May 2020;

(ii) commission paid to distributors – the due date for disclosure of the commissions paid to

distributors (Point 2(a) of Circular No. SEBI/HO/IMD/DF2/CIR/P/2016/42 dated 18 March 2016)

has been extended from 10 April 2020 to 10 May 2020; and

(iii) investor complaints – the due date for disclosure of the investor complaints with respect to

mutual funds (Point 4(b) of Circular No. Cir/IMD/DF/2/2010 dated 13 May 2010) has been

extended from 31 May 2020 to 30 June 2020.

(iv) new schemes – All mutual fund schemes where the observation letter was issued by SEBI and

are yet to be launched shall have a validity period of one year from the date of the SEBI letter

and all new mutual fund schemes where the final observation letter will be issued by SEBI shall

have a validity period of one year from the date of the SEBI letter.

4.5.2 Relaxations for AIFs and VCFs – By its notification of 30 March 2020, SEBI has extended the due

dates for all regulatory filings and compliances for AIFs and VCFs for the period ending 31 March 2020

and 30 April 2020 by two months over and above the timelines prescribed under the AIF Regulations

and the circulars issued thereunder.

4.5.3 Implementation of the Stewardship Code – By its circular of 24 December 2019, SEBI had introduced

the Stewardship Code for mutual funds and AIFs relating to stewardship responsibilities of monitoring

and actively engaging with investee companies on various matters including performance

(operational, financial, etc.), strategy, corporate governance (including board structure,

remuneration, etc.), material environmental, social, and governance opportunities or risks, capital

structure, etc. SEBI has extended the implementation of the Stewardship Code and it will now come

into effect from 1 July 2020 (as opposed to 1 April 2020).

4.5.4 Relaxation for AMCs – Additionally, in light of difficulties expressed by AMCs, the access control

presently exercised in the AMCs’ dealing rooms, including call recording of deals, has been temporarily

relaxed subject to checks and balances including electronic confirmation by way of email or other

system having audit trail in place.

4.6 Relaxations for FPIs, portfolio managers and CRAs

4.6.1 FPIs – As per the operational guidelines issued under the FPI Regulations, entities applying for

registration as FPIs are required to submit original KYC documents or attested copies where originals

cannot be submitted. By its notification of 30 March 2020, SEBI has permitted custodians and

designated depository participants to process FPI registration/ continuation requests (or KYC review

and any other material change) on the basis of scanned copies of KYC documents instead of originals,

provided that these documents are received from e-mail addresses of their global custodians/ existing

clients where these details are already captured in records; or e-mail addresses of new clients received

from domains which are duly encrypted with transport–layer security or similar encryption or the

documents are password protected. These relaxations will remain applicable until 30 June 2020, and

originals of all documents submitted during this period must be provided within 30 days following the

expiry of the relaxation period i.e. by 30 July 2020.

4.6.2 Portfolio Managers – By its notification of 30 March 2020, SEBI has provided an extension of two

months in respect of: (i) the monthly reporting to SEBI by portfolio managers for the periods ending 31

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March 2020 and 30 April 2020; and (ii) the implementation of the guidelines for portfolio managers

issued by SEBI by its circular dated 13 February 2020.

4.6.3 CRAs – By its notification of 30 March 2020, SEBI has permitting CRAs to not consider non-payment

of principal/ interest or any rescheduling of payment of debt obligation by issuer companies as a default

until the period of moratorium granted by the RBI i.e. 31 May 2020 (see paragraph 1.3.4 and paragraph

5 for details). In addition, the timelines/ due dates have been extended for rating action/ issue of press

releases and the annual and semi-annual disclosures required to be made by CRAs under the SEBI

(Credit Rating Agencies) Regulations, 1999.

5 Relaxations granted by the RBI

5.1 By its notification of 27 March 2020, the RBI has provided the following relaxations to borrowers and Lending

Institutions:

5.1.1 Lending Institutions have been permitted by the RBI to declare moratorium on payment of instalments

in relation to term loans which become due between 1 March 2020 and 31 May 2020. Instalment for

this purpose includes (i) principal and/or interest components; (ii) bullet repayments; (iii) equated

monthly instalments; and (iv) credit card dues. If a Lending Institution declares such a moratorium for

any term loan, the repayment schedule and the residual tenor of such loan will also be moved by 3

months to take the moratorium into account. However, interest will continue to accrue on the

outstanding amount during the moratorium period. Please note that the Indian Banking Association

has issued FAQs (Frequently Asked Questions) published on 1 April 2020 that this facility will be made

available to all borrowers across the board whose accounts are standard asset on 1 March 2020.

Further, to avoid unnecessary paperwork the facility has been extended across the board to all the

borrowers by extending repayment of term loan instalments (includes interest) by 90 days. It remains

to be seen if all banks will take the same approach, especially in relation to corporate borrowers.

5.1.2 Lending Institutions can also grant a moratorium on interest on working capital facilities availed of in

the form of cash credit or overdraft falling due between 1 March 2020 and 31 May 2020. Such interest

will become payable immediately after the completion of the moratorium period.

5.1.3 In respect of borrowers who have availed of working capital facilities in the form of cash credit or

overdraft and who are facing stress on their borrower account due to COVD-19, a Lending Institution

can recalculate their drawing limit by reducing the margins and/or by reassessing the working capital

cycle until 31 May 2020. Before providing this relaxation, the Lending Institution will have to satisfy

itself that such recalculation is required due to economic effects of COVD-19. The RBI has also

provided for subsequent supervisory review of such recalculated borrowing accounts to verify their

justifiability though it has not provided a process or timeline for this.

5.2 The RBI has also clarified that any relief granted or adjustment made pursuant to paragraph 5.1 above will

not lead to downgrade of asset classification of such borrower’s account or qualify as defaults for reporting

to credit information companies. However, Lending Institutions are required to formulate a board approved

policy for providing these reliefs which is be published in public domain. The RBI has also provided certain

procedural requirements which need to be complied with.

5.3 Realisation of export proceeds – The Export Regulations require that the full export value of goods, software

or services exported from India must be realised within 9 months from the date of export. Following an

amendment to the Export Regulations and by its notification of 1 April 2020, the RBI has extended the period

of realisation of export proceeds from 9 months to 15 months in respect of all exports made up to 31 July

2020.

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6 Relaxations granted by IRDAI

6.1 Submission of returns – The timeline for submission of monthly and quarterly returns for the month of

March 2020 by insurers and insurance intermediaries under the relevant regulations has been

extended by a period of 15 days.

6.2 Submission of final re-insurance programme – As per the applicable regulations, insurers are required

to file their respective board approved final re-insurance programme for the financial year 2020-21 by

30 April 2020 along with a synopsis of catastrophe modelling report. IRDAI has extended the due date

for this filing to 31 May 2020.

6.3 Insurance premiums – IRDAI has granted the following relaxations in relation to payment/ charging of

premiums in respect of insurance products:

6.3.1 insurers have been asked to grant a grace period of up to 30 days for payment of renewal

insurance premiums in respect of life insurance policies, if desired by the policyholders;

6.3.2 insurers may condone a delay of up to 30 days in renewal of health insurance policies without

considering such delay as a break in the policy; and

6.3.3 insurers are required to continue charging the current premium rates being charged in respect

of motor third party liability insurance cover from 1 April 2020 until further orders.

7 CONCLUSION

The above relaxations are initial steps to ease the immediate difficulties caused by the coronavirus epidemic

and consequent lockdown and more steps are anticipated, particularly as more becomes known as to the

duration of the lockdown and its negative economic consequences.

2 April 2020

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Contacts

For further information please contact:

This publication only highlights key issues and is not intended to be comprehensive. The contents of this publication do not constitute any opinion or determination on,

or certification in respect of, the application of Indian law by Talwar Thakore & Associates (“TT&A”). No part of this publication should be considered an advertisement

or solicitation of TT&A’s professional services. This communication is confidential and may be privileged or otherwise protected by work product immunity.

Kunal Thakore

Partner, Corporate

+91 22 6613 6961

kunal.thakore@tta.in

Feroz Dubash

Partner, Corporate

+91 22 6613 6932

feroz.dubash@tta.in

Anurag Shrivastav

Managing Associate

+91 22 6613 6942

anurag.shrivastav@tta.in

Deepa Christopher

Counsel

+91 22 6613 6943

deepa.christopher@tta.in

Sonali Mahapatra

Partner, Banking &

Finance

+91 22 6613 6988

sonali.mahapatra@tta.in

Nidhi Rani

Counsel

+91 22 6613 6947

nidhi.rani@tta.in