Recently small listed companies (SME listed Companies) have been loaded with heavy compliance responsibilities.
These small listed companies having shareholder less than 1000 shareholders and mostly listed on regional stock exchanges, consist of companies in SME segment.
On the one hand our government is speaking as to encourage the SME sector as it is the sector where employment potential is maximum.
But on the other hand, compliance burden is maximized on these companies. At present small listed companies are facing below stated compliance burden:
1. Compliance with various provisions of Companies Act, 2013
2. Liablility to be listed on BSE/NSE as regional stock exchanges are being derecognized.
Though MCA is having some liberal attitude and have deferred application of various provisions viz. e-voting in general meetings, granting various exemptions as per draft Notification presented in Parliament.
But being listed has become a curse for such SME listed companies as SEBI is having a tough attitude for such companies. SEBI revised clause 49 (relating to corporate governance) and 35B (related to e-voting) of listing agreement on 17.04.2014 to incorporate the provisions of the Companies Act, 2013.
Whereas MCA has deferred e-voting till 31.12.2014, but SEBI do not act in tandem with MCA. Since SEBI had modified clause 35B on the basis of Companies Act, 2013, it would have been just proper for SEBI to defer e-voting at least for SME Listed Companies and also to liberalise clause 49 for small companies having less than 1000 shareholders.
But it seems SEBI is above the Govt. of India and MCA. MCA can consider the problems of stakeholders, but SEBI bosses are dictators. They do not consider whether SME Listed Companies are able to cope up the burden or not.
Tags Corporate Law