Introduction
In a progressive step toward workplace accountability and gender equality, India’s market regulator SEBI (Securities and Exchange Board of India) has mandated that all listed companies must disclose information related to sexual harassment complaints and maternity benefits compliance in their Board of Directors’ reports, effective July 2025. This move aims to enhance corporate transparency and reinforce a safe working environment, especially for women.
New Compliance Requirements for Listed Companies
As part of the enhanced disclosure norms, SEBI’s revised guidelines now require:
- Detailed disclosures of the number of sexual harassment complaints filed, disposed of, and pending during the financial year.
- A confirmation of compliance with the Maternity Benefit (Amendment) Act, 2017, which ensures paid leave and workplace support for new mothers.
- Information about the Internal Complaints Committee (ICC) constituted under the POSH (Prevention of Sexual Harassment) Act, 2013.
Why This Move Matters
This regulatory update reinforces the message that companies are not only accountable for financial performance but also for ethical governance and employee well-being. Here’s why it’s significant:
1. Strengthens Employee Confidence
Publicly disclosing harassment data signals that companies take employee safety seriously, fostering trust among existing and prospective talent.
2. Promotes Workplace Transparency
Mandating board-level reporting ensures these matters are not swept under the rug and are instead addressed with visible executive oversight.
3. Aligns with Global ESG Standards
Environmental, Social, and Governance (ESG) reporting is gaining traction globally. Including social compliance metrics such as harassment cases and maternity support aligns Indian firms with international governance norms.
Impact on Corporates and HR Practices
For organizations, this means:
- Strengthening internal policies on harassment prevention.
- Ensuring swift redressal mechanisms.
- Educating leadership and HR on compliance with the Maternity Act.
- Maintaining up-to-date records for transparent disclosure in board reports.
HR leaders must also prepare to audit internal systems and train ICC members to meet compliance standards.
SEBI’s Growing Emphasis on Governance
SEBI has been actively enhancing disclosure norms for listed companies in recent years. From mandating ESG disclosures to improving board diversity, this latest rule adds a critical social dimension to corporate reporting.
Conclusion
Starting July 2025, all listed companies in India must take an active role in documenting and disclosing sexual harassment complaints and maternity policy compliance. This is a clear shift toward ethical corporate governance and a safer, more inclusive workplace.
As organizations prepare for this change, it’s vital that leadership, HR, and compliance teams work together to ensure both legal adherence and cultural transformation.
