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SEBI Introduces Integrated Filing Framework for Listed Entities

Compliance and Regulatory Technology

SEBI, Governance, Financial, Disclosures

Business Honor
05 January, 2025

Sebi’s new compliance system simplifies governance, financial filings, and reporting for listed companies.

Capital markets regulator Securities and Exchange Board of India (Sebi) has brought in a new compliance regime for listed entities, introducing an integrated filing system for governance and financial disclosures. This new system will start to be applicable for the quarter ending on December 31, 2024. It reduces the compliance burden by combining a multitude of periodic filing requirements into one unified system.

According to Sebi, integrated filing will simplify governance-related filings, including investor grievance redressal and corporate governance compliance, which earlier were submitted within 30 days of the end of the quarter. Financial filings, including disclosures in related-party transactions, would be filed in 45 days, although at the year-end, the filing would be completed within 60 days. The new structure includes quarterly disclosures of material events, including updates on tax litigation, minor penalties, and significant acquisitions, now consolidated from separate reporting streams.

The new system follows suggestions from an expert committee that reviewed the Listing Obligations and Disclosure Requirements (LODR) regulations. Sebi has also strengthened eligibility conditions for secretarial auditors of listed entities, aimed at enhancing accountability. To that end, such roles can be undertaken only by peer-reviewed company secretaries who are not disqualified for certain specific reasons.

Sebi has also restricted auditors from providing some services like internal audits and compliance management to prevent bias. It also requires listed entities to disclose employee benefit schemes and obtain board approval for redaction of sensitive information.

The new filing system will be implemented through the BSE and NSE portals, which will simplify the filing process. Penalties will be attracted for non-compliance, and stock exchanges will be obligated to monitor and enforce the framework. The Institute of Company Secretaries of India (ICSI) has been entrusted with the responsibility of ensuring compliance with the updated guidelines.