Capital market regulator of India, the Security and Exchange Board of India (SEBI) on 17 April 2014 issued detailed corporate governance norms for listed companies. The norms have been launched for stricter disclosures and protection of investor rights, including equitable treatment for minority and foreign shareholders.
SEBI has amended clauses 35B and 49 of the listing agreement and the new rules will be effective from 1 October 2014. The norms requires companies to set certain things, namely
• The listed companies need to provide the option of facility of e-voting to shareholders on all resolutions proposed to be passed at general meetings
• To get shareholders approvals for related party transactions
• Establish whistle blower mechanism
• Elaborate disclosures on pay packages
• Have at least a woman director on their boards
The issued norms of SEBI are associated with the new Companies Act and are aimed to encourage companies to adopt best practices on corporate governance. The new set of norms was approved by the SEBI board during its meeting held in February 2014.
When: 17 April 2014