The Securities and Exchange Board of India (SEBI) has introduced a new compliance framework to simplify governance and financial reporting for listed companies. Effective from the quarter ending December 31, 2024, companies will use an integrated filing system for submitting disclosures.
This initiative aims to reduce compliance burdens by combining various reporting requirements into a single platform. SEBI explained that the new system, called Integrated Filing under the LODR (Listing Obligations and Disclosure Requirements) Regulations, will make the process more efficient for listed entities.
Under the framework, governance-related filings, such as corporate governance compliance and investor grievance redressal, must be submitted within 30 days after the quarter ends. Financial filings, including quarterly results and related-party transactions, are required within 45 days, while year-end reports must be submitted within 60 days.
The framework requires quarterly reporting of key events, such as tax disputes, small penalties, and major acquisitions. These reports will now be part of the integrated filing system, replacing the earlier fragmented process.
To improve accountability, SEBI has tightened eligibility criteria for secretarial auditors. Only peer-reviewed company secretaries with specific qualifications can serve as auditors. Additionally, auditors are restricted from offering services like internal audits to maintain impartiality.
The Institute of Company Secretaries of India (ICSI) is responsible for guiding its members on the new guidelines and ensuring they adhere to them. Companies must also disclose employee benefit schemes and seek board approval before redacting commercially sensitive information.
Stock exchanges like BSE and NSE are required to develop systems to facilitate single filings and enforce compliance with the new framework. SEBI has also set strict penalties for non-compliance, ensuring greater transparency and accountability in corporate governance.
This integrated filing system is a major step toward streamlining compliance, making processes easier for companies while enhancing transparency in the Indian corporate sector.
