Listed companies in India are required to comply with various event-based regulations as outlined by the Securities and Exchange Board of India (SEBI). These regulations fall under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR) and the SEBI (Prohibition of Insider Trading) Regulations, 2015 (PIT). This article provides a detailed compliance checklist for companies, highlighting key events that trigger reporting obligations and the associated timelines.
Key Compliance Events
Listed companies must report specific events promptly to ensure transparency and regulatory adherence. Important events includes Changes in Directors, Auditors, or Key Management Personnel (KMP), Significant Corporate Actions such as issuance of notices, press releases, or investor presentations.
Compliance Checklist
Change in Directors/KMP/Auditor/Compliance Officer: Notify within 12 hours (24 hours for resignation). (Reg 30 – Clause 7)
Appointment of Director: Report within 12 hours of the appointment. (Reg 30 – Clause 7)
Cessation of Director (Term Completion): Notify within 12 hours. (Reg 30 – Clause 7)
Resignation of KMP/Senior Management: Report within 7 days, providing detailed reasons. (Reg 30 – Clause 7A)
Resignation of Auditor: Notify within 24 hours, including the reasons for resignation. (Reg 30 – Clause 7A)
New Rating or Rating Revision: Report within 24 hours. (Reg 30 – Clause 3)
Initiation of Forensic Audit: Notify within 12 hours if initiated by the listed entity, or within 24 hours if initiated by an external agency. (Reg 30 – Clause 3)
Loss of Share Certificate/Duplicate Issuance: Report within 2 working days. (Reg 39(3))
Amendments to MOA and AOA: Notify within 12 hours. (Reg 30)
Analyst or Investor Meetings: Provide notice at least 2 working days in advance. (Reg 30)
Press Releases on Material Events: Report within 24 hours or 12 hours based on materiality. (Reg 30)
Non-compliance with these regulations can lead to penalties, making it essential for listed companies to follow proper reporting procedures.
Conclusion
By adhering to the event-based compliance checklist, listed companies can ensure they meet regulatory requirements and maintain transparency with shareholders and regulatory bodies. Timely and accurate reporting not only fosters trust but also safeguards against potential penalties and reputational damage.
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