Compliance Chiefs Push For Elevation, Companies Seek Clarity From SEBI

The Economic Times reported that a recent directive by the Securities and Exchange Board of India (SEBI) elevating the role of Company Secretaries or Chief Compliance Officers (CCOs) to one level below the Managing Director (MD) or Chief Executive Officer (CEO) has triggered mixed reactions across corporate India.

Following SEBI’s April 1, 2025, circular amending Listing Obligations and Disclosure Requirements (LODR) norms, compliance officers in some companies are now seeking parity with Chief Financial Officers (CFOs) in designation and pay. While CCOs have welcomed the move, several listed firms are concerned it may affect internal hierarchies and raise HR challenges. Compliance heads have formally asked Boards for elevation and salary revisions in a few mid-sized companies. Industry experts urge SEBI to clarify that the rule is aimed at strengthening reporting lines, not altering compensation frameworks. Some say the change is key for regulatory oversight in sectors like banking and insurance. Others note that HR and pay decisions should remain company-specific, as SEBI’s goal is to empower CCOs, not redefine corporate structures.

Some companies fear a ripple effect, with other functions also demanding role re-evaluations. Legal and risk heads are reportedly monitoring the situation for potential implications on their roles.