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TMI BlogResignation of statutory auditors from listed entities and their material subsidiariesX X X X Extracts X X X X X X X X Extracts X X X X ..... Committee of a listed entity, inter alia, has to make recommendations for the appointment, remuneration and terms of appointment of auditors of a listed entity. Under Sub-clause (7), the Audit Committee is also responsible for reviewing and monitoring the independence and performance of auditors and the effectiveness of the audit process. 3. Further, Sub-clause (7A) inserted under Clause A in Part A of Schedule III under Regulation 30(2) of SEBI LODR Regulations requires detailed reasons to be disclosed by the listed entities to the stock exchanges in case of resignation of the auditor of a listed entity as soon as possible but not later than twenty-four hours of receipt of such reasons from the auditor. 4. Regulation 36(5) of the SEBI L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gnation, issue the limited review/ audit report for the last quarter of such financial year as well as the audit report for such financial year. B. Other conditions relating to resignation shall include: (i) Reporting of concerns with respect to the listed entity/its material subsidiary to the Audit Committee: a. In case of any concern with the management of the listed entity/material subsidiary such as non-availability of information / non-cooperation by the management which may hamper the audit process, the auditor shall approach the Chairman of the Audit Committee of the listed entity and the Audit Committee shall receive such concern directly and immediately without specifically waiting for the quarterly Audit Committee meetings. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and 6(B) above in the annual secretarial compliance report issued in terms of SEBI Circular no. CIR/CFD/CMD1/27/2019 dated February 08, 2019. C. Obligations of the listed entity and its material subsidiary: (i) Format of information to be obtained from the statutory auditor upon resignation: Upon resignation, the listed entity / its material subsidiary shall obtain information from the Auditor in the format as specified in Annexure A to this Circular. The listed entity shall ensure disclosure of the same under Sub-clause (7A) of Clause A in Part A of Schedule III under Regulation 30(2) of SEBI LODR Regulations. (ii) Co-operation by listed entity and its material subsidiary: During the period from when the auditor proposes to resig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Exchange Board of India Act, 1992 read with regulations 18(3), 30(2) and 36(5) of the SEBI LODR Regulations and shall be in addition to the provisions of Companies Act, 2013. 12. The circular is available on SEBI website at www.sebi.gov.in under the category - 'Legal → Circulars'. Pradeep Ramakrishnan General Manager Compliance and Monitoring Division-1 Corporation Finance Department +91-22-26449246 [email protected] Annexure A Format of information to be obtained from the statutory auditor upon resignation 1. Name of the listed entity/ material subsidiary: 2. Details of the statutory auditor: a. Name: b. Address: c. Phone number: d. Email: 3. Details of association with the listed entity/ material s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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