The Securities and Exchange Board of India (SEBI) has unveiled a new compliance framework for listed entities that introduces an integrated filing system for the management and disclosure of financial information. This system will be applicable for filings relating to the quarter ending 31 December 2024.
The initiative is designed to ease the compliance burden by consolidating various periodic reporting requirements into a single process.
“SEBI has decided to introduce integrated reporting under the LODR Regulation to simplify governance and financial reporting for listed entities. This will be effective for filings due for the quarter ending December 31, 2024 onwards,” the regulator said in a statement.
This change follows the recommendations of the expert committee tasked with revising SEBI's Listing Obligations and Disclosure Requirements (LODR) norms.
Under the new framework, governance applications – such as statements redressing investor grievances and corporate governance compliance – must be submitted within 30 days of the end of the quarter. Meanwhile, financial filings, including disclosure of related-party transactions and quarterly results, are required within 45 days. Applications at the end of the year will have a 60-day deadline.
In addition, SEBI mandates quarterly disclosure of significant events, including updates on tax disputes, minor penalties and acquisitions exceeding certain thresholds. These disclosures will be integrated into an integrated record format, replacing 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.
In addition, there are restrictions 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 compliance with the updated guidelines. Listed companies must also disclose details of employee benefit schemes and obtain board approval before redacting commercially sensitive information.
The new framework also sets deadlines for disclosure of shareholding patterns, credit ratings and reclassifications, with penalties for non-compliance.
To further streamline the process, SEBI is facilitating individual filings through the BSE and NSE portals. Exchanges are instructed to develop systems and infrastructure to monitor and enforce the framework.
