SEBI (LODR) Regulation 30 And The Compliance Challenges For Listed Companies In India

Introduction – Regulation 30: A Daily Pain Point for Listed Companies

For most listed companies, Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is one of the most demanding compliance requirements that they are faced with. The rule is simple: disclose material events promptly and transparently to stock exchanges. The practice, however, is anything but simple.

Information sits with disparate teams—legal, finance, operations, HR, even external consultants. Not all of them communicate in real time. Yet the law expects "immediate" disclosure, often well within 24 hours. The result? Compliance officers and company secretaries are constantly firefighting, trying to determine: Is this event material? Is it reportable? Has this already been informed the stock exchanges in past?

This fragmented reality creates a high-risk environment. Delay or error can distort the market, attract regulatory action, and damage reputation. For Boards and CXOs, it means sleepless nights knowing that a single missed disclosure can trigger disproportionate consequences. Successfully navigating these SEBI Regulation 30 compliance challenges India requires robust internal systems.

A Year of Heightened Scrutiny on LODR Disclosure Requirements

SEBI's actions over the past year show that the regulator is watching closely. Between November and December 2024, SEBI consolidated and streamlined its disclosure and corporate governance requirements through the LODR Third Amendment Regualtions 2024 and two key Circulars on 25 February 2025, it issued an Industry Standards Note on Regulation 30 to bring uniformity in how listed entities determine and communicate material events. The note was developed in consultation with industry associations and professional bodies to curb inconsistency in disclosures.

Together, these developments underline that Regulation 30 is not a procedural tick-box, but is a frontline governance obligation.

Key Architecture of Regulation 30 Disclosures

To understand why Regulation 30 is considered the backbone of India's continuous-disclosure regime, it helps to look at its basic architecture under Schedule III of the LODR Regulations:

Mandatory Disclosures (Para A to Part A of the Schedule III)

Events that must be disclosed without applying any materiality test.

These are mandatory disclosures covering critical corporate developments such as:

• Acquisition, merger, de-merger, or sale of a business segment;
• Change in directors, key managerial personnel, auditors, or compliance officer;
• Resignation or removal of statutory auditors;
• Fraud, default, or arrest of key officials;
• Outcome of Board meetings on dividends, buy-backs, financial results, or fund-raising.

Materiality-Tested Disclosures (Para B to Part A of the Schedule III)

Events subject to the company's assessment of materiality.

These include developments that may or may not be significant depending on context—for example:

• pendency of litigation;
• Loan, surety or guarantee arrangements;
• Disruptions of operations due to natural calamities or labour unrest. Here, each company must determine materiality using its Board-approved Materiality Policy based on parameters such as:
  • The likely quantitative impact on turnover, net worth, or profit;
  • The reputational or strategic significance of the event; and
  • The ability of investors to make an informed decision if the event were known.

Materiality Thresholds (Reg. 30(4))

For events under Para B of Schedule III, an event or information shall be considered material based on either quantitative or qualitative thresholds.

Quantitative Thresholds:

An event or information is deemed material if its omission exceeds the lower of the following limits, calculated on the basis of the latest audited consolidated financial statements of the listed entity:

• 2% of turnover;
• 2% of net worth (not applicable if net worth is negative); or
• 5% of the average of the absolute values of profit or loss after tax for the last three financial years.

Qualitative Thresholds:

An event or information under Para B may also be considered material if its omission:

• Results in an alteration or discontinuity of information already in the public domain; or
• Is likely to cause significant market reaction if such omission comes to light at a later date.

In addition, the Board of Directors may, at its discretion, determine other events or information as material, even if they do not meet the above quantitative or qualitative thresholds.

In addition, Regulation 30(4)(ii) requires a Board-approved Materiality Policy (hosted on the company website) built on these criteria, to guide employees and authorised KMPs in identifying and escalating potential material events.

Continuous disclosure and updates: Regulation 30 also obliges companies to provide ongoing updates until the event is fully resolved or closed, ensuring that partial information does not mislead investors.

Komtrol and Komtrol+ – Bridging the Compliance Gap

To help companies address these complex LODR disclosure requirements for listed companies, we at Lexplosion Solutions Private Limited have developed a tailor-made compliance solution.

• Komtrol (Our Existing Tool): Already in use by leading listed companies, Komtrol is specifically designed to function as a specialized market rumour verification tool and a real-time tool for tracking material price movements under Regulation 30(11) of SEBI (LODR). It is one of the most effective tools for SEBI Circular 30(11) compliance, streamlining the process of identifying unusual price movements and ensuring mandatory, prompt rumour verification..
• Komtrol+ (Our Advanced Model): Building on this strong foundation, we are now developing Komtrol+, an advanced version of our tool that will cover the entire spectrum of Regulation 30 disclosures under Schedule III, including automated support for materiality testing and document trail generation for Para A and Para B events.

Conclusion – The Need for Smarter SEBI Regulation 30 Compliance

Regulation 30 of the LODR is a powerful tool for maintaining market integrity, but compliance is often a fine balance between speed, accuracy, and judgment. With regulators tightening scrutiny, listed entities need smarter compliance solutions. Komtrol has already established itself as a proven market rumour verification tool and its effectiveness in supporting companies under Regulation 30(11) has helped numerous listed companies. With Komtrol+ we are taking the next step—bringing end-to-end support for all disclosure obligations under Regulation 30.

With these solutions, companies can not only stay compliant but also foster greater trust, transparency, and long-term value creation in the capital markets.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.