The corporate compliance landscape in India has undergone significant transformation since the COVID-19 pandemic, with the Securities and Exchange Board of India (SEBI) continuously adapting its regulatory framework to meet emerging challenges. Drawing inspiration from an insightful article by Vaneesa Agrawal, a SEBI lawyer, on COVID-19 disclosure requirements published in 2020, this piece examines how SEBI's approach to corporate governance has evolved through 2025.
"The pandemic catalysed for SEBI to reassess and strengthen its disclosure requirements," notes Vaneesa Agrawal, a recognised SEBI expert lawyer who heads Thinking Legal. "What began as emergency measures has evolved into a more comprehensive framework for corporate transparency."
The Journey from Crisis Management to Systematic Reform
The trajectory of SEBI's regulatory evolution reflects a thoughtful progression from immediate crisis response to long-term systematic reform. As Vaneesa Agrawal, founder of Thinking Legal and a SEBI expert lawyer, points out, "SEBI's initial focus was on ensuring timely disclosure of COVID-19's material impact on listed entities. Today, we see these principles being integrated into a broader, more streamlined compliance framework."
SEBI lawyers note that during the initial phase of the response to challenges posed by the COVID-19 pandemic, the focus was primarily on ensuring that listed companies provided transparent communications about pandemic-related disruptions to their operations, financial status, and business continuity plans.
This evolution is evident in SEBI's recent introduction of the integrated filing system for governance and financial disclosures. The new framework, as pointed out by SEBI lawyers, which takes effect for filings related to the quarter ending December 31, 2024, represents a significant step forward in simplifying compliance procedures while maintaining rigorous oversight.
SEBI lawyers highlight that the system builds upon lessons learned during the pandemic, incorporating feedback from various stakeholders and addressing gaps identified in previous disclosure requirements.
"What started as emergency measures have evolved into a more sophisticated and comprehensive approach to corporate governance."
- Vaneesa Agrawal, Thinking Legal
Streamlined Compliance: A Balance of Efficiency and Thoroughness
"The move toward integrated filing demonstrates SEBI's commitment to reducing procedural complexities without compromising on transparency," explains Vaneesa Agrawal. As a SEBI expert lawyer with extensive experience in regulatory matters, she emphasises that "this streamlining benefits both companies and stakeholders by ensuring more efficient information flow while maintaining comprehensive oversight."
The new framework introduces several key changes:
Consolidated Timeline Structure
Governance filings within 30 days post-quarter
Financial disclosures within 45 days
Annual submissions within 60 days
Enhanced Material Event Reporting
Regular updates on tax litigation
Disclosure of minor penalties
Acquisition-related information
A particularly innovative aspect of the new system, as explained by SEBI lawyers, is its integrated approach to filing requirements. Rather than submitting multiple reports through different channels, companies can now fulfil their obligations through a single, comprehensive filing process. SEBI expert lawyers say that this integration not only reduces the administrative burden on companies but also minimizes the risk of inconsistencies in reported information.
"These structured timelines," Vaneesa Agrawal, an expert SEBI lawyer observes, "create a more predictable and manageable compliance calendar for listed entities while ensuring stakeholders receive timely information."
Strengthening Professional Standards
SEBI lawyers say that the framework also introduces stricter eligibility criteria for key professionals involved in compliance processes. As Vaneesa Agrawal, a SEBI expert lawyer, explains, "SEBI's emphasis on peer-reviewed company secretaries and restrictions on certain auditor services reflects a deeper understanding of the need for professional independence in compliance matters."
This focus on professional standards includes:
Enhanced qualifications for secretarial auditors
Restrictions on concurrent services by auditors
Greater emphasis on professional independence
From all the points above, SEBI lawyershighlight that the framework also addresses potential conflicts of interest by placing clear restrictions on concurrent services provided by auditors. For instance, SEBI expert lawyers point out that the auditors can no longer perform internal audits and compliance management simultaneously for the same entity. This separation of duties enhances the independence and objectivity of audit processes.
Additionally, the SEBI lawyers explain that the framework emphasises the importance of professional independence through mandatory rotation requirements and enhanced disclosure of relationships between auditors and listed entities.
Looking Ahead: Implications for Corporate Governance
As we look toward the future of corporate compliance in India, SEBI lawyers note that the intersection of efficiency and transparency becomes increasingly important. "The evolution of SEBI's regulatory framework reflects a mature understanding of market needs," Vaneesa Agrawal, a SEBI expert lawyer, points out. "It's about creating a balance between reducing compliance burden and maintaining robust oversight."
This balanced approach is particularly evident in:
The streamlined reporting structure
Enhanced focus on material disclosures
Integration of technology in compliance processes
Strengthened professional standards
Impact on Listed Entities and Stakeholders
The new framework's impact extends beyond mere procedural changes. Vaneesa Agrawal, founder of Thinking Legal emphasises that these reforms represent a fundamental shift in how listed entities approach compliance. It's no longer about mere checkbox exercises but about meaningful transparency that serves stakeholder interests.
Conclusion
The evolution of SEBI's regulatory framework from crisis response to an integrated compliance system demonstrates the regulator's commitment to advancing corporate governance standards while recognising the need for operational efficiency. As noted by SEBI expert lawyer Vaneesa Agrawal, this transformation marks a significant milestone in India's corporate governance journey.
While comprehensive, SEBI lawyers conclude that the new framework remains focused on practical implementation and real-world effectiveness. It represents a thoughtful balance between regulatory oversight and operational efficiency, setting a strong foundation for corporate governance in the years ahead.