SEBI proposes framework to avoid penalty duplication by exchanges on cos
This story was originally published at 16:54 IST on 22 August 2026
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MUMBAI – The Securities and Exchanges Board of India Chairman Tuhin Kanta Pandey Saturday said that the regulator was reviewing the framework relating to monitoring and disclosure of utilisation of issue proceeds to improve timely disclosures and streamline the compliance process. The regulator is also looking to reduce compliance burden and has proposed a framework to avoid duplication of fines levied by multiple exchanges on a company for the same matter, Pandey said at the Institute of Directors - Annual Directors' Conclave 2026.
The chair also proposed to further clarify the framework for related-party transactions, to make requirements clear and workable for issuers while retaining the necessary safeguards for investors. Pandey highlighted that transparency in company disclosures has less to do with the quantum of information disclosed and is more predicated on the timeliness and usefulness of the information shared.
Further, Pandey underscored the need for access to sound information when it comes to the role of independent directors and auditors of a company, underscoring the regulator's mandate for them to approve related-party transactions.
Additionally, Pandey commented on the growing impetus for companies to further engage in understanding the role of technology in their businesses beyond delegating it to an operational matter. "Technology risk is business risk. And therefore, it is board risk," Pandey said, adding that cyber resilience, technology governance, and risk management are assuming greater significance in the wider governance framework. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Shruti Nair
Edited by Akul Nishant Akhoury
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