Sebi’s Regulatory Architecture: Ensuring Transparency, Accountability, And Market Integrity
- IJLLR Journal
- Apr 25
- 1 min read
Jasdeep Singh Arora, Amity Law School, Amity University, Noida, Uttar Pradesh
I. SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
1. Background and Need for LODR
The Listing Agreement between the companies and stock exchanges predominantly governed the disclosure policies for listed companies before 2015. This resulted in gaps within the compliance framework, lack coherence and poor enforcement. In pursuit of these foundational flaws, SEBI enacted the LODR Regulations, 2015 to amalgamate disclosure regulations into one statutory instrument that is clear and strong. The intention of the LODR Regulations was to bring the system of corporate disclosures in India in line with globally accepted standards by improving reliability, utility, and enforceability.
2. Regulation 4 – Principles Governing Disclosures and Obligations1
This regulation is the philosophical backbone of LODR and lays down guiding principles, such as:
Timely and accurate disclosure of material information.Fair treatment of all shareholders, particularly minority and retail investors. Avoidance of selective disclosure, promoting parity of information. Emphasis on sustainable value creation and long-term corporate reputation.
Significance: This regulation functions as a benchmark for interpreting disclosure obligations in ambiguous scenarios. It represents a movement from “checklist compliance” mentality to a more principles-based governance.
3. Regulation 30 – Disclosure of Material Events and Information2
This regulation requires real-time disclosure of information that may affect, in any way,
