SEBI introduces simplified compliance framework for listed companies. Check details 

The Securities and Exchange Board of India (SEBI) has introduced a new compliance framework aimed at listed entities by introducing an integrated governance and financial disclosure framework, which will be applicable for the quarter ending December 31, 2024.

The initiative is designed to ease the compliance burden by consolidating the various periodic filing requirements into a single process.

“SEBI has decided to implement Integrated Reporting under the LODR Regulation to streamline governance and financial reporting of listed entities. This will be effective for the quarter ending December 31, 2024 and for filings thereafter,” the regulator said in a statement.

This change follows the recommendations of an expert committee tasked with revising SEBI’s Listing Obligations and Disclosure Requirements (LODR) norms.

Under the new framework, governance filings such as investor complaint resolution statements and corporate governance compliance must be filed within 30 days of the end of the quarter, while financial filings, including related party transaction disclosures and quarterly results, are required within 45 days. Year-end submissions will have a 60-day deadline.

In addition, SEBI mandates quarterly disclosure of material events, including updates on tax proceedings, minor penalties and acquisitions exceeding certain thresholds.These disclosures will be included in an integrated filing format, replacing the earlier fragmented reporting system.

SEBI has also introduced stricter eligibility criteria for secretarial auditors of listed entities to improve accountability.These roles can now only be undertaken by peer-reviewed company secretaries who meet certain qualifications.

Furthermore, restrictions are placed on auditors performing certain services, such as internal auditing and compliance management, to ensure impartiality.

The Institute of Company Secretaries of India (ICSI) has been directed to communicate the new provisions to its members and ensure compliance with the updated guidelines.Listed entities must also disclose details of employee benefit schemes and obtain board approval before redacting commercially sensitive information.

The new framework also sets disclosure deadlines for stock patterns, credit ratings and reclassifications, with penalties for non-compliance.

To further simplify the process, SEBI is facilitating individual submissions through the BSE and NSE portals.Stock exchanges are mandated to develop systems and infrastructure to monitor and enforce the framework.