New Compliance Framework by Sebi

Capital markets regulator Sebi has introduced a new compliance framework for listed entities, aiming to simplify the filing process for governance and financial disclosures. This integrated filing system will be effective for submissions related to the quarter ending December 31, 2024, and beyond.

Key Features of the Integrated Filing System

The new system consolidates multiple periodic filing requirements into a single platform, streamlining the compliance process. Governance-related filings, such as investor grievance redressal and corporate governance compliance, must be submitted within 30 days of the quarter's end. Financial filings, including related-party transactions and quarterly financial results, have a 45-day deadline, extending to 60 days for year-end submissions.

Enhanced Accountability and Transparency

Sebi has also mandated quarterly disclosure of specific material events, including updates on tax litigation, minor penalties, and significant acquisitions. The eligibility criteria for secretarial auditors have been tightened to ensure accountability, and restrictions have been imposed on auditors to maintain impartiality.

Implementation and Compliance

The Institute of Company Secretaries of India (ICSI) is responsible for disseminating the circular's provisions and ensuring adherence. Listed entities are required to disclose key details of employee benefit schemes and secure board approval for redacting sensitive information. The framework specifies timelines for various disclosures, with non-compliance attracting penalties.

Sebi's initiative to enable single filings via the BSE and NSE portals is designed to ease procedural complexities. The stock exchanges are directed to establish necessary systems and infrastructure for monitoring and implementing the framework.