Section 178 and Reg 20 of LODR Stakeholders Relationship Committee meeting
Applicability: Section 178 and Regulation 20 of the Listing Obligations and Disclosure Requirements (LODR) are applicable to all companies listed on stock exchanges in India.
Meeting: The Stakeholders Relationship Committee of the board of directors of a company is required to hold a meeting to discuss and resolve stakeholder grievances.
Timeline: The committee must meet at least once in a quarter to review the status of the grievances and take necessary action.
Exemption: Small companies with a paid-up capital of less than Rs. 10 crores and a turnover of less than Rs. 100 crores are exempted from this requirement.
Penalty: For the company: A penalty of up to Rs. 1 lakh for each day of non-compliance, subject to a maximum of Rs. 25 lakh. For the officers in default: Imprisonment for up to one year or a fine of up to Rs. 5 lakh, or both.
Reporting Authority: The company must report the status of grievance redressal to the stock exchanges in the format specified by SEBI.
Other: The committee must ensure that there is a system in place to resolve complaints received through various modes of communication, such as post, email, and other electronic means. The company must also ensure that the details of the committee are prominently displayed on the company's website and annual report.
