SEBI Eases Compliance Requirements for Listed Companies
 

In order to facilitate ease of doing business for listed entities, the Securities and Exchange Board of India (SEBI), at its meeting held on 15 March 2024, has approved certain amendments to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

All the important changes in the Listing Regulations are summarized below:

Manner of determining market capitalization-based compliance requirements

SEBI has revised the method for determining market capitalization-based compliance requirements for listed entities. Instead of relying on a single day's market capitalization (31 March), compliance will now be assessed based on the average market capitalization over the preceding six months ending on 31 December. Additionally, a sunset clause of three years has been introduced to cease the applicability of market capitalization-based provisions.

Vacancies of Key Managerial Personnel (KMP) can now be filled in six months

SEBI has extended the timeline for filling vacancies of KMP from three months to six months.

Harmonization and reduction of timelines for prior intimation of board meetings

SEBI has harmonized and reduced the timelines for prior intimation of board meetings. A uniform timeline of two working days has been prescribed, replacing the previous range of two to eleven working days.

Increase in the time gap between two consecutive meetings of the Risk Management Committee to 210 days

SEBI has increased the time gap between two consecutive meetings of the Risk Management Committee from 180 days to 210 days, providing listed entities with more flexibility in scheduling meetings.

Uniform approach to verification of market rumors by equity-listed entities

SEBI has introduced a uniform approach to verifying market rumors for equity-listed entities. This includes establishing the objective and uniformly assessed criteria for rumor verification based on material price movement, requiring timely responses from promoters, directors, KMP, and senior management. SEBI has also clarified that unverified events or information reported in print or electronic media should not be considered 'generally available information'.

Mandatory applicability of listing norms for High Value Debt Listed Entities (HVDLEs) extended till 31 March 2025

SEBI has extended the mandatory applicability of listing norms, including Regulation 16 to 27 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and compliance thereof for HVDLEs until 31 March 2025.