Sebi mandates compliance for listed entities with integrated filing

Capital markets regulator Sebi has rolled out a new compliance framework for listed entities, introducing integrated filing for governance and financial disclosures, which will be applicable for filings to be done for the quarter ending December 31, 2024.

The latest move aims to reduce compliance burdens by unifying multiple periodic filing requirements into a single system.

"In order to facilitate ease of filing and compliance for listed entities, it has been decided to introduce Integrated Filing, in terms of...the LODR Regulations, for the following governance and financial related periodic filings required under the LODR, which shall be applicable for the filings to be done for the quarter ending December 31, 2024 and thereafter," the regulator said.

The regulator incorporates recommendations from an expert committee which was set up to review the Sebi's LODR (Listing Obligations and Disclosure Requirements) norms.

Under the new system, governance-related filings such as statements on investor grievance redressal and corporate governance compliance must now be submitted within 30 days of the quarter's end.

Financial filings, including disclosures of related-party transactions and quarterly financial results, have a 45-day deadline, with an extended 60-day timeline for year-end submissions, the Securities and Exchange Board of India (Sebi) said in a circular on Tuesday.

Sebi also mandated quarterly disclosure of specific material events, including tax litigation updates, minor penalties, and acquisitions exceeding defined thresholds. These are to be incorporated into the integrated filing format, streamlining previously fragmented reporting practices.

The regulator also tightened eligibility norms for secretarial auditors of listed entities to bolster accountability. Only peer reviewed company secretaries free of specific disqualifications can now undertake these roles.

Further, restrictions have been imposed on auditors rendering certain services, such as internal audits and compliance management, to maintain impartiality.

The Institute of Company Secretaries of India (ICSI) has been tasked with disseminating the circular's provisions among its members and ensuring adherence to the revised guidelines. Listed entities are also required to disclose key details of employee benefit schemes and secure board approval for redacting commercially sensitive information before publishing them, the regulator said.

Additionally, the framework also specifies timelines for disclosures related to shareholding patterns, credit ratings, and reclassifications, among others, with non-compliance attracting penalties.

The regulator's move to enable single filings via the BSE and NSE portals is another feature aimed at easing procedural complexities. Further, the stock exchanges are directed to put in place necessary systems and infrastructure for monitoring and implementation of the framework, Sebi added.