Corporate Governance Post-2025: New Compliance Requirements
By FairLex Editorial | February 15, 2026 · 1 min read
The landscape of corporate governance in India has undergone significant transformation with recent amendments to the Companies Act and SEBI regulations. Companies must now adhere to stricter transparency, accountability, and ESG reporting standards.
Key Changes
The latest regulatory framework introduces several critical requirements:
- Enhanced Board Diversity: Listed companies must ensure at least one-third of their board members are independent directors with demonstrable expertise in relevant fields.
- ESG Reporting: Mandatory Business Responsibility and Sustainability Reporting (BRSR) for the top 1000 listed companies.
- Digital Compliance: All statutory filings must be made through the MCA21 Version 3 portal.
Impact on Startups
While large corporations have dedicated compliance teams, startups face unique challenges in meeting these requirements. The government has introduced certain relaxations for startups registered under the Startup India program, but compliance remains essential.
Penalties for Non-Compliance
Non-compliance can result in hefty fines, imprisonment of directors, and even striking off the company from the register. It is crucial for companies to stay updated with regulatory changes.