SEBI offers a simplified compliance framework for listed companies. Check details

The Securities and Exchange Board of India (SEBI) has unveiled a new compliance framework targeting listed entities, introducing an integrated filing system for governance and financial disclosures. This system will be applied to deposits relating to the quarter ending December 31, 2024.

This initiative is designed to ease compliance burdens by consolidating various periodic filing requirements into a single process.

“SEBI has decided to implement integrated registration under the LODR regulations to simplify governance and financial reporting of listed entities. This will be effective for deposits due for the quarter ending December 31, 2024 onwards,” the regulator said in a statement.

This change follows the recommendations of the expert committee tasked with reviewing SEBI’s Listing Obligations and Disclosure Requirements (LODR) standards.

Under the new framework, governance filings – such as data on investor grievance handling and corporate governance compliance – must be submitted within 30 days after the end of the quarter. Meanwhile, financial disclosures, including disclosures of related party transactions and quarterly results, are required to be filed within 45 days. End-of-year applications will have a 60-day deadline.

In addition, SEBI mandates quarterly disclosure of material events, including updates on tax litigation, minor penalties and acquisitions exceeding certain thresholds. These disclosures will be consolidated into the integrated filing model, which will replace the previous fragmented reporting system.

SEBI has also introduced stricter eligibility criteria for secretarial auditors of listed entities to improve accountability. Only peer-reviewed company secretaries, who meet specific qualifications, can now undertake these roles.

Furthermore, restrictions are imposed on auditors performing certain services, such as internal audits and compliance management, to ensure impartiality.

The Institute of Company Secretaries of India (ICSI) has been mandated to communicate the new provisions to its members and ensure compliance with the updated guidelines. Listed entities must also disclose details of employee benefit plans and obtain board approval before redacting commercially sensitive information.

The new framework also sets timelines for disclosures on shareholding patterns, credit ratings and reclassifications, with penalties for non-compliance.

To further simplify the process, SEBI is facilitating individual deposits through the BSE and NSE portals. Stock exchanges are required to develop systems and infrastructure to monitor and implement the framework.