The Securities and Exchange Board of India (SEBI) has unveiled a new compliance framework for listed entities, introducing an integrated filing system for governance and financial reporting. This system will be applicable for deposits related to the quarter ending December 31, 2024.
The initiative is designed to ease compliance burdens by consolidating various periodic filing requirements into a single process.
“SEBI has decided to implement integrated filing under 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 and beyond,” the regulator said in a statement.
The change follows the recommendations of an expert committee to review SEBI’s Listing and Disclosure Obligations (LODR) norms.
Under the new framework, governance filings – such as investor grievance statements and corporate governance compliance – must be submitted within 30 days of the end of the quarter. Meanwhile, financial documents, including information on related party transactions and quarterly results, are required within 45 days. End of year submissions will have a 60 day deadline.
Additionally, SEBI requires quarterly disclosure of material events, including updates on tax disputes, minor penalties and acquisitions exceeding certain thresholds. This information will be incorporated into the integrated filing format, which will replace the previous fragmented reporting system.
SEBI has also introduced stricter eligibility criteria for auditor secretaries of listed entities to improve accountability. Only peer-reviewed company secretaries with specific qualifications can now take on these roles.
Additionally, restrictions are placed on auditors performing certain services, such as internal audits and compliance management, to ensure their impartiality.
The Institute of Company Secretaries of India (ICSI) has been tasked with communicating the new provisions to its members and ensuring compliance with the updated guidelines. Listed entities must also disclose details of employee benefit plans and obtain board approval before deleting commercially sensitive information.
The new framework also sets deadlines for the disclosure of shareholding patterns, credit ratings and reclassifications, with sanctions for non-compliance.
To further streamline the process, SEBI is facilitating one-time filings through the BSE and NSE portals. The exchanges are responsible for developing systems and infrastructure to monitor and enforce the framework.
