Sheetal Universal not required to submit corporate governance report for FY 2025
NOOR MOHMMED
14/Apr/2025
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Sheetal Universal Limited clarified that Regulation 27(2) of the SEBI LODR Regulations is not applicable to the company.
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The company qualifies for exemption under Regulation 15(2), as its securities are listed on the NSE EMERGE Platform (SME Exchange).
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Therefore, it is not required to submit the Corporate Governance Report for the quarter and year ended March 31, 2025.
Sheetal Universal Limited, listed on the NSE EMERGE platform, has officially announced that it falls under the non-applicability criteria of Regulation 27(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and is therefore not obligated to submit a corporate governance report for the quarter and year ended March 31, 2025.
The company issued this intimation to the National Stock Exchange of India Limited on April 14, 2025, reaffirming its compliance with the provisions laid down under Regulation 15(2) of the SEBI LODR Regulations.
Why Regulation 27(2) Does Not Apply
As per Regulation 15(2) of SEBI LODR, certain corporate governance provisions do not apply to entities that meet the following conditions:
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(a) The entity has paid-up equity share capital not exceeding ₹10 crore and net worth not exceeding ₹25 crore as on the last day of the previous financial year, or
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(b) The entity has listed its specified securities on the SME Exchange.
Sheetal Universal Limited falls under Category (b), as its equity shares are listed on the NSE EMERGE platform, which is classified as an SME Exchange.
Corporate Governance Exemptions
The non-applicability includes various corporate governance provisions, including but not limited to:
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Regulation 17 to 27
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Sub-parts (b) to (i) and (t) of Regulation 46(2)
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Parts C, D, and E of Schedule V of SEBI LODR
These exemptions streamline compliance for small and medium-sized listed entities, easing their reporting burdens and aligning regulatory expectations with their scale of operations.
Official Statement by the Company
In its official letter signed by Mr. Hiren Vallabhbhai Patel, Managing Director (DIN: 06961714), the company stated:
“We fall into Category (b) as our equity shares are listed on the NSE EMERGE Platform. Therefore, Regulation 27(2) is not applicable to our Company. Hence, our Company is not required to submit the Corporate Governance Report for the Quarter and Year ended March 31st, 2025.”
This declaration ensures that stakeholders are informed of the company's regulatory standing and the rationale behind the absence of a governance report submission.
About Sheetal Universal Limited
Sheetal Universal Limited is a company that trades under the symbol SHEETAL on the NSE EMERGE platform. It operates under the SME listing framework, which is designed to promote growth-oriented enterprises by providing a simplified listing and compliance structure.
The company continues to adhere to all mandatory regulatory frameworks applicable to SME-listed companies, including timely disclosures and financial reporting.
Understanding the SME Exchange Advantage
Listing on an SME exchange such as NSE EMERGE offers multiple benefits:
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Lighter compliance burden, especially regarding corporate governance regulations.
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Easier access to capital markets for smaller enterprises.
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Encouragement for early-stage growth companies to go public.
The SEBI exemption provisions, such as those in Regulation 15(2), are designed to balance governance requirements with the operational capacity of smaller firms.
Implications for Investors
While exemptions exist, investors should note:
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Exemption from governance reporting does not mean lack of transparency.
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Companies are still subject to financial reporting, annual disclosures, and quarterly results.
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The move aligns with SEBI’s approach to support SMEs while maintaining investor protection.
For Sheetal Universal, this ensures operational efficiency while still maintaining the core regulatory checks and balances that protect minority shareholders.
Conclusion
Sheetal Universal Limited’s declaration of non-applicability of SEBI Regulation 27(2) is a procedural yet important regulatory update, especially for investors tracking governance-related disclosures. The company's listing on the SME platform qualifies it for relaxed compliance, which is in line with SEBI’s differentiated approach for small and mid-sized enterprises.
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