Sebi Clarifies Compliance Officer Level in Disclosure Regulations

Sebi clarified the term 'level' in disclosure regulations, stating it refers to the Compliance Officer's position within a company's hierarchy. The Compliance Officer must report directly to the MD or Whole-Time Director(s) or be one level below the CEO in their absence. Sebi extended the deadline for implementing retail investment standards in algorithmic trading by one month.

Sebi, the markets regulator, has clarified the term 'level' in disclosure regulations for listed entities, indicating it refers to the Compliance Officer's position within the company's organizational structure.

This clarification mandates that the Compliance Officer report directly to the Managing Director or Whole-Time Director(s) on the Board. If such directors are absent, the officer should be no more than one level below the Chief Executive Officer or managerial heads, underscoring Sebi's emphasis on hierarchical clarity.

In a related development, Sebi has postponed the deadline for finalizing retail investment standards in algorithmic trading to May 1, 2025, following requests from stock exchanges for more time to resolve pending issues and ensure seamless market operations.

(With inputs from agencies.)