Tue Oct 01 08:57:00 UTC 2024: ## SEBI Eases Disclosure Norms for Listed Companies, Streamlines IPO Process

**Mumbai, Oct 1, 2024:** In a significant move aimed at easing the burden on listed companies, the Securities and Exchange Board of India (SEBI) has relaxed disclosure requirements and streamlined the Initial Public Offering (IPO) process. These changes were announced following a board meeting held on September 30th.

**Key Changes for Listed Companies:**

* **Reduced Disclosure Threshold:** Companies will only be required to disclose fines and penalties exceeding INR 1 lakh imposed by sector regulators or enforcement agencies. For other fines/penalties, the threshold is INR 10 lakh.
* **Extended Deadlines:** Listed companies now have 3 hours to disclose information related to board meetings concluded after trading hours, up from 30 minutes previously. The deadline for disclosures related to litigation or disputes has been extended to 72 hours from the previous 24 hours.
* **Single Filing System:** A single filing system has been introduced, allowing companies to file information with one exchange, which will be automatically reflected on other exchanges.
* **Streamlined Periodic Filings:** Periodic filings have been categorized into “Integrated Filing (Governance)” and “Integrated Filing (Financial)” to reduce the number of regular filings.
* **Optional Newspaper Advertisement:** Listed companies can now choose to not publish advertisements regarding financial results in newspapers.
* **Extended Deadline for Board Committee Vacancies:** Listed companies have been granted an additional 3 months to fill vacancies on board committees.
* **Exemption from CRIP Provisions:** Board, committee, and key managerial positions are now exempt from the provisions of the Insolvency and Bankruptcy Code, 2016 related to Corporate Insolvency Resolution Process (CRIP).

**Changes for Companies Preparing for Listing:**

* **Single Advertisement:** Companies will need to submit a single advertisement incorporating both pre-issue and price-band details. Certain information must be disclosed through a QR code link.
* **Optional Pro-forma Financials:** Companies are allowed to voluntarily disclose pro-forma financials related to acquisitions or disposals that were completed or proposed during the public issue, rights issue, or qualified institutional placement (QIP) process.

These changes are expected to simplify compliance procedures and enhance transparency in the Indian capital market. The SEBI board meeting also discussed changes to index-derivative regulations, but no announcements were made.

Read More