The Securities and Exchange Board of India (SEBI) has introduced a new compliance framework aimed at simplifying the accounts filing process for listed entities. This initiative, called ‘Integrated Filing,’ will come into effect for filings related to the quarter ending December 31, 2024, and onwards. The new filing system seeks to consolidate multiple periodic filing requirements, making it easier for companies to comply with governance and financial disclosure norms under SEBI’s Listing Obligations and Disclosure Requirements (LODR) regulations.
The capital markets regulator said, “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 decision to introduce Integrated Filing follows recommendations from an expert committee established to review the existing LODR norms. This is expected to alleviate the compliance burden faced by the listed entities, streamlining reporting and enhancing transparency.
Under the new framework introduced by SEBI, governance-related filings such as corporate governance compliance and investor grievance redressal statements will be due within 30 days after the end of each quarter. Financial filings, which include disclosures on related-party transactions and quarterly financial results, must be submitted within 45 days of the quarter’s end, with a 60-day deadline for year-end (financial year-end) reports. This system replaces the earlier fragmented and often cumbersome reporting practices, which required companies to submit multiple filings for different aspects of their business.
In addition to simplifying filing processes, SEBI’s new framework also mandates quarterly disclosures of specific material events, including updates on tax litigations, minor penalties, and acquisitions exceeding defined thresholds. These disclosures are to be incorporated within the integrated filing format, reducing redundancies and improving the clarity of the information available to investors. This move is expected to enhance the quality of reporting, making it easier for market participants to assess a company’s financial health and governance practices.
In an attempt to further bolster accountability and ensure higher standards of governance, SEBI has imposed stricter eligibility criteria for secretarial auditors. From now on, only peer-reviewed company secretaries who are free of disqualifications can undertake auditing roles for listed entities. Additionally, restrictions have been placed on auditors who provide services like internal audits and compliance management to avoid potential conflicts of interest and maintain impartiality.
The new framework also specifies deadlines for disclosures related to shareholding patterns, credit ratings, and reclassifications, among others. Non-compliance with the new requirements will result in penalties, encouraging listed entities to adhere strictly to the revised guidelines. Furthermore, SEBI has instructed stock exchanges like the BSE and NSE to facilitate integrated filings via their portals, simplifying the submission process for companies.
In a bid to ensure smooth implementation, SEBI has directed the Institute of Company Secretaries of India (ICSI) to circulate the new provisions to its members and support their adherence to the updated guidelines. Listed entities are also required to disclose details of employee benefit schemes and ensure board approval for any commercially sensitive information before making it public.
With the introduction of the Integrated Filing framework, SEBI aims to enhance the efficiency and effectiveness of corporate disclosures, while reducing administrative burdens. By streamlining the compliance process, the regulator is taking significant steps to promote transparency, accountability, and investor confidence in the Indian capital markets.
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