Compliance requirements for listed companies, arising out of Securities and Exchanges Board of India's (SEBI) regulations do not seek to change the business models of the companies, Madhabi Puri Buch said in the chairperson’s statement in SEBI’s Annual Report 2022-23.
Such changes according to Puri Buch, fall out of the "regulatory ambit of SEBI."
Puri Buch also believes that the regulations for listed companies focus on disclosures and governance, areas which fall under the ambit of the market regulator.
She further went on to explain that the regulator gives ample time to companies to put in place a system and practices to adopt the new requirements when it flushes out new disclosure requirements or governance norms.
To justify her statement, Buch also highlighted the recent regulations in respect of related party transactions (RPTs), which were amended in November 2021, and were then made effective with a glide path.
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"The less stringent norms were made effective from April 01, 2022. The more stringent norms were made effective only after a further period of one year, from April 1, 2023," she said.
Going ahead, as the adoption of technology catches further pace, the SEBI chairperson expects compliance processes to become simpler and easier for corporates.
"Regulatory frameworks for issuers of listed securities and various business activities in the securities markets have been evolving continuously, sometimes in response to problems, leading to new compliance requirements, at other times creating new opportunities for market participants," she added.
Read more | SEBI plans to experiment with 'shift' in regulatory architecture: Chairperson Madhabi Buch
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