SEBI Compliances in India
Its very much essentially required for stock exchange listed companies to follow. Business houses should follow all requirements and compliances
Compliance for Listed Companies
Compliance for Listed Companies
- Listing Agreement Compliance - Companies must adhere to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR).
- Periodic Financial Disclosures - Quarterly & annual financial results must be reported to stock exchanges.
- Insider Trading Regulations - Prevents unfair trading by those with access to unpublished price-sensitive information.
- Corporate Governance Compliance - Provisions related to Board structure, independent directors, and audit committees.
- Takeover Code Compliance - SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, governs M&As.
Compliance for Market Intermediaries (Stockbrokers, Mutual Funds, etc.)
- Registration & Licensing - All intermediaries must register with SEBI.
- Risk Management & KYC Compliance - Investors must comply with SEBI's Know Your Customer (KYC) and Anti-Money Laundering (AML) norms.
Compliance for Foreign Portfolio Investors (FPIs)
- FPIs must register under SEBI (Foreign Portfolio Investors) Regulations, 2019.
- Compliance with Foreign Exchange Management Act (FEMA).
- Tax & reporting obligations for FPIs investing in Indian securities.
SEBI Reporting & Filing Requirements
- Annual & Quarterly Reports - Listed companies must submit reports to stock exchanges.
- Shareholding Pattern Disclosure - Promoters and investors must report shareholding structure.
- Material Event Disclosures - Any major event affecting business (M&A, lawsuits, bankruptcy) must be disclosed.
- Insider Trading Compliance - Reporting under Prohibition of Insider Trading Regulations, 2015.
SEBI Penalties for Non-Compliance
- Monetary fines - Heavy penalties for non-disclosure and fraudulent practices.
- Trading suspension - SEBI can suspend a company's trading on stock exchanges.
- Debarment of Directors & Promoters - Key persons can be banned from securities markets.
- Criminal Proceedings - Fraudulent activities may lead to prosecution under SEBI Act, 1992.
Recent SEBI Reforms & Updates
- Mandatory ESG Reporting - Environmental, Social & Governance (ESG) disclosures for top 1,000 companies.
- T+1 Settlement Cycle - Faster settlement of stock market transactions.
- Stronger Corporate Governance Rules - Enhanced scrutiny of related-party transactions.
- Digital KYC & Online Compliance Filings - Simplified procedures for investor onboarding.
RBI & FEMA Compliance in India
The Reserve Bank of India (RBI) regulates foreign exchange transactions under the Foreign Exchange Management Act (FEMA), 1999. These regulations govern foreign investments, external borrowings, forex transactions, and cross-border trade.