The Securities and Exchange Board of India (SEBI) has unveiled a new compliance framework aimed at listed entities, introducing an integrated filing system for governance and financial disclosures. This scheme is applicable for filings relating to the quarter ending December 31, 2024.
This initiative is designed to ease the compliance burden by consolidating various periodic filing requirements into a single process.
“SEBI has decided to implement consolidated filing under LODR regulations to simplify governance and financial reporting for listed entities. This will be effective for the quarter ending December 31, 2024 and for all scheduled filings thereafter,” the regulator said in a statement.
The change follows the recommendations of an expert committee tasked with reviewing SEBI's Listing Responsibilities and Disclosure Requirements (LODR) norms.
Under the new framework, governance filings – such as investor grievance redressal statements and corporate governance compliance – must be submitted within 30 days of the end of the quarter. Meanwhile, financial filings including disclosures of related party transactions and quarterly results are required within 45 days. There is a 60-day deadline for year-end submissions.
In addition, SEBI mandates quarterly disclosure of material events, including updates on tax cases, minor penalties and acquisitions beyond certain thresholds. These disclosures will be incorporated into the consolidated filing format, which will replace the previous fragmented reporting system.
To improve accountability, SEBI has also introduced stricter eligibility criteria for secretarial auditors of listed entities. Only peer-reviewed company secretaries who meet specific qualifications can now undertake these roles.
Furthermore, restrictions are placed 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 tasked with communicating the new provisions to its members and ensuring adherence to the updated guidelines. Listed entities must disclose information about employee benefit schemes and obtain board approval before redacting commercially sensitive information.
The new framework sets deadlines for disclosure of share ownership patterns, credit ratings and reclassifications, and penalties for non-compliance.
To further streamline the process, SEBI facilitates individual filings through the BSE and NSE portals. Stock exchanges are advised to develop systems and infrastructure to monitor and enforce the framework.