SEBI Proposes Compliance Easing for Listed Non-Convertible Securities

The Securities and Exchange Board of India (Sebi) has proposed amendments to ease compliance for entities with listed non-convertible securities. This includes aligning the approval process for financial results with equity-listed entities, streamlining disclosure timelines, and mandating the use of XBRL for filings. Public comments are invited by September 6.

The Securities and Exchange Board of India (Sebi) has unveiled proposed amendments aimed at easing compliance requirements for entities with listed non-convertible securities.

This initiative, announced in the FY 2023-24 Budget, is expected to lower compliance costs in the financial sector. Sebi's consultation paper suggests aligning the approval and authentication process for financial results of such entities with that of equity-listed entities.

The proposed amendments also include streamlining procedures so that financial results are approved by the board of directors and signed by a designated official. Sebi recommends aligning disclosure rules for fraud and defaults by key managerial personnel for both equity-listed and non-convertible securities entities.

Additionally, the regulator suggests reducing the timeline for notifying the stock exchanges of record dates from 7 to 3 working days. On top of these changes, mandatory XBRL (eXtensible Business Reporting Language) filings will simplify the process, eliminating the need for PDF submissions.