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 system will be applicable for filings related to the quarter ending December 31, 2024.
The initiative is designed to ease compliance burdens by consolidating various periodic filing requirements into a single process.
“SEBI has decided to implement Integrated Filing under the LODR Regulations to simplify the governance and financial reporting for listed entities. This will be effective for filings due for the quarter ending December 31, 2024, and onwards,” the regulator said in a statement.
This change follows recommendations from an expert committee tasked with reviewing SEBI’s Listing Obligations 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 after the quarter ends. Meanwhile, financial filings, including disclosures on related-party transactions and quarterly results, are required within 45 days. Year-end submissions will have a 60-day deadline.
Additionally, SEBI mandates the quarterly disclosure of material events, including updates on tax litigation, minor penalties, and acquisitions surpassing certain thresholds. These disclosures will be incorporated into the integrated filing format, which will replace the previous fragmented reporting system.
SEBI has also introduced stricter eligibility criteria for secretarial auditors of listed entities to improve accountability. Only peer-reviewed company secretaries, who meet specific qualifications, can now take on 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 also disclose details of employee benefit schemes and obtain board approval before redacting commercially sensitive information.
The new framework also sets timelines for disclosures on shareholding patterns, credit ratings, and reclassifications, with penalties for non-compliance.
To streamline the process further, SEBI is facilitating single filings through the BSE and NSE portals. Stock exchanges are instructed to develop systems and infrastructure to monitor and enforce the framework.
