SEBI Circular SEBI/HO/CFD/PoD2/CIR/P/2025/47: Enhancing Transparency and Accountability in Listed Entity Disclosures

Source: SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/2025/47

Date of Issue: April 10, 2025

The Securities and Exchange Board of India (SEBI), through its Circular No. SEBI/HO/CFD/PoD2/CIR/P/2025/47, has ushered in a new era of transparency, governance and accountability for India’s listed entities and those aspiring to list on Indian stock exchanges. These reforms significantly enhance the framework for corporate disclosures, focusing on materiality, ESG reporting, IPO preparedness and board accountability. With increasing global scrutiny on corporate governance and investor protection, SEBI’s initiative aligns Indian capital markets more closely with international regulatory standards.

As Indian companies attract greater interest from global investors and expand their footprint, robust disclosure norms become not just a regulatory requirement but a strategic imperative. The revised guidelines mandate proactive, timely and granular disclosure of material events, the adoption of standardized sustainability reporting and stronger oversight from company boards and compliance officers.



Role of Compliance Professionals and Company Secretaries

The role of Company Secretaries (CS) and Chief Compliance Officers has expanded significantly in the wake of this circular. Key responsibilities now include:

  • Event Surveillance and Escalation:
    Proactively identifying developments that could qualify as material events and ensuring they are promptly reported.
  • BRSR Coordination:
    Working with sustainability, legal and operations teams to compile ESG disclosures for the BRSR.
  • Board Briefings: Advising the board on potential compliance risks, regulatory changes and stakeholder expectations.
  • Disclosure Audits:
    Periodic review of past disclosures to ensure consistency and completeness and preparing for SEBI compliance audits.

Benefits of the Circular

Improved Market Efficiency
Enhanced disclosure quality and frequency reduce information asymmetry and allow markets to price securities more efficiently.

  • Investor Empowerment
    Retail and institutional investors benefit from clear, accurate and timely information, enabling better investment decisions.
  • Enhanced Corporate Credibility
    Companies that voluntarily exceed the disclosure minimums are likely to enjoy reputational benefits, leading to better valuations and easier access to capital.
  • Alignment with Global Norms
    By adopting international best practices in sustainability and disclosure, Indian companies position themselves favorably with global investors and regulators.

Strategic Recommendations for Companies

To navigate this new regulatory environment effectively, companies should:

  • Conduct Materiality Workshops:
    Train internal teams to assess what qualifies as a material event under the new guidelines.
  • Appoint ESG Champions:
    Establish cross-functional teams responsible for compiling, reviewing and enhancing ESG data quality.
  • Upgrade IT Systems:
    Implement disclosure management platforms with audit trails, real-time alerts and template-based filings.
  • Strengthen Internal Controls:
    Regularly review internal communication channels to ensure that information flows seamlessly from operational teams to compliance officers.

Click here - https://uja.in/blog/compliance-desk/sebi-circular-enhancing-transparency-and-accountability-in-listed-entity-disclosures/

Comments

Post a Comment

Popular posts from this blog

Upcoming Tax Changes for 2025

Image
As we approach 2025, various proposed tax changes are on the horizon that could significantly impact individual taxpayers and businesses. While some of these changes are still in the discussion phase, understanding them now can help you plan effectively for the upcoming tax year. Understanding the Basics of International Taxation: - i. Standard Deduction Adjustments One of the anticipated changes is an increase in the standard deduction amounts. While specific figures have yet to be finalized, adjustments are likely based on inflation. This could provide taxpayers with greater relief and simplify the filing process for those who do not itemize. ii. Changes to Tax Brackets The IRS typically adjusts tax brackets annually to account for inflation. Taxpayers should be aware of potential changes in income thresholds for various tax rates, which could impact how much tax you owe based on your income level. iii. Corporate Tax Rates There is ongoing discussion about revisiting corporate tax ra...
Read more

An Analysis on the Prevention of Sexual Harassment ACT, 2013

Image
  The   Prevention of Sexual Harassment   Act, 2013   is a piece of legislation that was introduced to establish and offer a safe and respectful work environment for women. The main objective of the   POSH   Act is to create awareness, proactive measures, and a fair and confidential grievance redressal process for aggrieved women who are subject to any kind of harassment at the workplace. Important Provisions Under The Act Formation of Internal Committee : Under the  POSH  Act, organizations with more than 10 employees are required to constitute an internal committee to act as a redressal mechanism for the aggrieved parties under the act. The committee is composed of a chairperson who must be a senior-level female employee in an organization, at least two other employees, and one external member with expertise in the field of sexual harassment or a social worker working for the cause of women. Powers of Internal Committee : The Prevention of Workp...
Read more

Taxation of Bitcoins and Cryptocurrencies in 2025

Image
  Cryptocurrencies like Bitcoin have become increasingly popular as both investments and means of transaction. However, their tax treatment can be complex. Understanding how cryptocurrencies are taxed is crucial to staying compliant and avoiding potential penalties. Here’s a comprehensive guide to how Bitcoin and other cryptocurrencies are taxed in 2025. In India, the taxation of Bitcoin and other virtual digital assets (VDAs) is primarily governed under Section 115BBH of the Income Tax Act, 1961, which was introduced in the Finance Act 2022. This section and its provisions outline the tax treatment of income arising from the transfer of virtual digital assets, including cryptocurrencies like Bitcoin. To know more blog insights, check the link-  https://uja.in/blog/taxation-times/taxation-of-bitcoins-and-cryptocurrencies-in-2025/ Want to more tax related latest update, give us a visit-  https://uja.in/blog/taxation-times/
Read more