SEBI Unveils Streamlined Compliance Framework for Listed Companies

The Securities and Exchange Board of India (SEBI) has introduced a new compliance framework for listed companies, incorporating an integrated filing system for governance and financial disclosures. This framework is set to become effective for filings related to the quarter ending December 31, 2024. The initiative aims to streamline compliance by consolidating various periodic filing requirements into a single, unified process.

Under the revised framework, listed entities will need to submit governance filings, such as investor grievance redressal statements and corporate governance compliance, within 30 days after the quarter ends. Financial filings, including quarterly results and disclosures on related-party transactions, must be completed within 45 days. For year-end submissions, the deadline has been set at 60 days. SEBI has also mandated quarterly disclosures of material events, including updates on tax litigation, minor penalties, and acquisitions surpassing specified thresholds. These requirements will now be part of the integrated filing format, replacing the previous fragmented reporting system.

To ensure greater accountability, SEBI has introduced stricter eligibility criteria for secretarial auditors of listed companies. Only peer-reviewed company secretaries who meet specific qualifications will be permitted to undertake these roles. Furthermore, auditors are prohibited from performing certain additional services, such as internal audits and compliance management, to maintain impartiality. The Institute of Company Secretaries of India (ICSI) will oversee the communication and adherence to these updated guidelines among its members.

Listed entities are also required to disclose details of employee benefit schemes and obtain board approval before redacting commercially sensitive information. Timelines for disclosures related to shareholding patterns, credit ratings, and reclassifications have been defined, with penalties for non-compliance. To simplify the process further, SEBI is facilitating single filings through the BSE and NSE portals, with stock exchanges instructed to develop the necessary systems and infrastructure to monitor and enforce the new framework.

This overhaul follows recommendations from an expert committee reviewing SEBI’s Listing Obligations and Disclosure Requirements (LODR) norms. With this initiative, SEBI seeks to enhance transparency, accountability, and efficiency in the governance and financial reporting of listed entities.