Regulatory Compliance

In general, compliance means conforming to a rule, such as a specification, policy, standard or law. Regulatory compliance describes the goal that corporations or public agencies aspire to in their efforts to ensure that personnel are aware of and take steps to comply with relevant laws and regulations.

Due to the increasing number of regulations and need for operational transparency, organizations are increasingly adopting the use of consolidated and harmonized sets of compliance controls. This approach is used to ensure that all necessary compliance requirements can be met without the unnecessary fines and penalties.

Corporate scandals and breakdowns such as the Satyam case of reputational risk have highlighted the need for stronger compliance and regulations for publicly listed companies. The most significant regulation in this context is Regulation 27 (2) of the SEBI (LODR), 2015 which defined significant tighter personal responsibility of corporate top management for the accuracy of reported Corporate Governance and inter alia stipulates preparation of a Compliance Report of all laws applicable to a Company and review of the same by the Board of Directors periodically as well as to take steps by the company to rectify instances of non-compliance and to send report on compliance to Stock Exchanges quarterly. By the said circular the Stock Exchanges have been directed by the SEBI to set up a separate monitoring cell with identified personnel to monitor the compliance with the provisions of the revised Regulation 27 (2) of the SEBI (LODR), 2015 on corporate governance and to submit a consolidated compliance report to SEBI within 15 days from the end of each quarter.

As per the new SEBI (Listing Obligation and disclosure requirements) Regulations 2015, (LODR) read with Section 134 (5) (f) of the Companies Act, 2013 the relevant provisions mandates and contemplates the present corporate bodies to incorporate and implement a legal Compliance management system:

Compliance in India and other countries generally means compliance with laws and regulations. These laws can have criminal or civil penalties or can be regulations. There are a number of other Acts & regulations besides SEBI guideline such as Information Technology Act 2000, Companies Act 2013, etc. which mandates the Corporates both in Public and Private sectors to maintain and conduct periodic review of the regulatory functions and process of the organizations to ensure that the company’s goal, structure and ongoing operations are consistent with the latest developments in business and corporate laws and regulations which lowers the compliance risk profile, reduce fines, reassign headcounts, enable a better and higher use of the limited law department’s resources, save measurable cost and improve effectiveness and ensure due diligence.

Accordingly, the listed Companies will have to have a system for reporting compliances with laws applicable to them to the Board periodically. Hence, a legal compliance reporting process is necessary to comply with Reg. 27 (2) of the SEBI (LODR), 2015.

Putting together all the Acts and Regulations which are applicable to any organisation and the list of compliances under those Acts is a very complex and tedious process, and is better entrusted to the experts who have sufficiently researched and documented all the applicable laws and formulated guidelines on this matter to ensure due diligence on the part of the organisation. Independent assessment of legal compliance by experts will benefit the organisation to establish its credibility before its clients.

M. K. GHOSH & CO. is an industry-leading provider of legal research and compliance management services. It undertakes compliance monitoring exercise on the basis of constant legal research and provides a solution for ever-growing compliance challenge for the top Corporates of the country including “Maharatna”, “Nabaratna” and “Miniratna” Public Sector Undertakings (PSUs).

The firm constantly monitors changes in industry rules and regulations, assesses and identifies potential exposures and risk of the client under the same and makes sure they are being addressed effectively with the volume of changes and breadth of exposures and ensure there are no violations.

It also provides legal compliance audit service to check and ensure that the Company’s goal, structure and on-going operations are consistent with the latest development in business and corporate laws and regulations which lowers the compliance risk profile, reduces fines, reassigns headcounts, enables a better and higher use of limited law department’s resources, saves measurable costs and ensure due diligence.

The firm provides its clients the solution before there is a problem by measuring and managing their risk across multiple legal and regulatory mandates and jurisdictions.

The firm’s strength lies in its commitment to provide superior research-based services using world-class technology at the most affordable rate.

Regulatory Compliance Management includes the following :

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