Exposing Compliance Gaps: Why Indian Companies Face Regulatory Risks

Indian companies continue to grapple with regulatory actions despite heavy investments in audits. TeamLease RegTech's report reveals gaps in compliance audits, exposing businesses to various risks. The report suggests commissioning independent audits and elevating compliance oversight for better governance.

Indian companies are under increased scrutiny for regulatory lapses, as revealed by a recent report from TeamLease RegTech. Despite investing heavily in statutory, internal, and operational audits, enterprises are still exposed to compliance risks due to inadequate audit mechanisms.

The report points out that businesses must adhere to over 1,530 Acts and Rules, along with a staggering 69,000 statutory compliance obligations. This extensive regulatory landscape includes over 6,600 filings and demands continuous monitoring of approximately 13,000 annual regulatory updates across 3,750 government websites.

Compliance risks have shifted from administrative to operational, with stark variability across various business units. Manufacturing units achieve a 79% compliance rate, while warehouses lag at 61%. The report stresses the urgent need for independent compliance audits to bridge governance gaps and reduce the substantial risks these enterprises face.