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Compliance Under SEBI Regulations
Compliance Under SEBI Regulations is mandatory for listed companies, stockbrokers, investment advisors, and other market participants regulated by the Securities and Exchange Board of India (SEBI). These regulations ensure transparency, fair practices, and investor protection in India’s securities market.
SEBI has framed several regulations for entities operating in the securities market, such as the Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015, Insider Trading Regulations, 2015, and SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Compliance involves timely disclosures, filings, and adherence to governance standards to maintain market integrity.
Importance
1. Regulatory Adherence : Ensures conformity with SEBI norms for market participants.
2. Investor Protection : Enhances transparency and safeguards investors’ interests.
3. Avoidance of Penalties : Prevents fines, suspension, or delisting for non-compliance.
4. Market Credibility : Builds trust among investors and stakeholders.
5. Facilitates Fundraising : Streamlined compliance supports IPOs and capital market transactions.
Applicability
SEBI compliance is required for.
- Listed Companies: Public companies listed on stock exchanges.
- Stockbrokers and Sub-Brokers: Entities facilitating trading in securities.
- Investment Advisors and Portfolio Managers: Professionals managing investments for clients.
- Mutual Funds and Asset Management Companies (AMCs): Registered with SEBI.
- Market Intermediaries: Custodians, depositories, and credit rating agencies.
Key SEBI Regulations
- SEBI (LODR) Regulations, 2015:
- Mandates disclosures by listed entities to stock exchanges.
- SEBI (Prohibition of Insider Trading) Regulations, 2015:
- Prohibits trading based on unpublished price-sensitive information (UPSI).
- SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018:
- Governs public issues, rights issues, and private placements.
- SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011:
- Regulates acquisition of shares and voting rights.
- SEBI (Mutual Funds) Regulations, 1996:
- Governs mutual funds and asset management activities.
Documents Required
Features
Features & Benefits of Compliance Under SEBI Regulations
Periodic Disclosures
Material Event Reporting
Focus on Investor Protection
Audit and Certification
Compliance Under SEBI Regulations
Governance Standards
Penalty for Non-Compliance
Integrated Digital Filings
Alignment with Global Standards
Customizable by Sector
Comparison with Related Services
| Feature | SEBI Compliance | Companies Act Compliance | GST Compliance |
|---|---|---|---|
| Objective | Regulate securities market | Corporate governance | Indirect tax reporting |
| Applicability | Listed entities and intermediaries | All registered companies | GST-registered entities |
| Regulatory Body | SEBI | MCA | GST Department |
| Filing Frequency | Quarterly/Annually | Annually/Event-based | Monthly/Quarterly/Annually |
| Penalty for Non-Compliance | High | High | High |
Frequently Asked Questions
Who must comply with SEBI regulations?
Listed companies, stockbrokers, investment advisors, mutual funds, and other intermediaries regulated by SEBI must comply.
What is the penalty for non-compliance with SEBI regulations?
Penalties range from monetary fines to suspension, delisting, or cancellation of licenses for intermediaries.
What is SEBI’s LODR regulation?
SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulation mandates periodic disclosures and corporate governance norms for listed companies.
What is the Secretarial Compliance Report?
It is an annual report certified by a practicing Company Secretary, confirming compliance with SEBI regulations for listed entities.
How are insider trading regulations enforced?
Insider trading regulations prohibit trading on unpublished price-sensitive information (UPSI) and mandate disclosures of trading activities by designated persons.
What are material events under SEBI regulations?
Material events are significant developments like mergers, acquisitions, or regulatory actions that can impact share prices and must be reported within 24 hours.