Sebi notifies new governance norms for listed firms

The number of independent directors will be increased to six including a woman director, the Sebi said in a gazette notification on Thursday.

In order to enhance governance and provide greater transparency, the market regulator Securities and Exchange Board of India (Sebi) has notified changes in the governance norms for listed companies.
 
The number of independent directors will be increased to six including a woman director, the Sebi said in a gazette notification on Thursday.
 
The regulator asked top 500 companies to appoint a woman independent director by 1 April 2019. 
 
It has also agreed to split the post of chairman and managing director (CMD), as proposed by Kotak panel.
 
The regulator issued a circular on the non-mandatory provisions such as disclosures of board evaluation, disclosure of medium and long-term strategy of the company and having an internal group governance committee.
 
The regulator opined splitting the CMD post will address conflict of interest.
 
After its board meeting held on March 28, Sebi has accepted 50 per cent of the recommendations made the Uday Kotak panel.
 
The committee had submitted its report in October last year.
 
In its report, Kotak panel said the suggestions were a sincere attempt to support and enable  sustainable growth of enterprise, while safeguarding interests of various stakeholders. 
 
"It is an endeavor to facilitate the true spirit  of  governance. Under  the  leadership  of  a  vigilant  market  regulator - SEBI,  and  with the  persistent  efforts  of  key  stakeholders,  corporate  governance  standards  in  India  will continue  to  improve."  
 
A  stronger  corporate  governance  code  will  enhance  the  overall confidence in Indian markets and in India, the panel said.
 
Source: Mint, Sebi, Media reports
 
 
 
 

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