SEBI Introduces Simplified Compliance Framework For Listed Entities

The Securities and Exchange Board of India (SEBI) has introduced a new compliance framework designed to simplify the reporting process for listed entities. This integrated filing system, which consolidates various filing requirements, will be applicable for submissions related to the quarter ending December 31, 2024, and beyond.

Objective: Reducing Compliance Burden

The new framework aims to ease the compliance burden on listed companies by merging multiple periodic filing requirements under the Listing Obligations and Disclosure Requirements (LODR) regulations. This unified approach streamlines the process and enhances efficiency for listed entities. SEBI’s decision to implement the revised compliance framework comes after recommendations from an expert committee that conducted a review of the existing LODR norms. The changes are intended to address concerns about the complexity and redundancy of filing processes.

Governance-Related Filings

Under the new system, governance-related filings, such as investor grievance redressal statements and corporate governance compliance, will need to be submitted within 30 days after the end of the quarter. This ensures timely and consistent reporting of governance practices. The revised framework introduces specific deadlines for financial filings. For instance, filings related to related-party transactions and quarterly results must be submitted within 45 days of the quarter’s conclusion. Additionally, year-end filings must be submitted within 60 days.

Material Event Disclosures

The new compliance framework also requires the quarterly disclosure of specific material events, including updates on tax litigations, minor penalties, and acquisitions exceeding prescribed thresholds. These disclosures will now be included in the integrated filing format, simplifying the reporting process and ensuring consistency across filings.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.