Sebi Working on Revised Listing Agreement Norms - The New Indian Express

Sebi Working on Revised Listing Agreement Norms

Published: 18th April 2014 06:00 AM

Last Updated: 18th April 2014 08:40 AM

Capital markets regulator Sebi is in the process of revising listing agreement norms including enhanced corporate governance provisions, according to Prashant Saran, whole-time member, Sebi.

It may be noted that the board of Securities and Exchange Board of India in February approved new corporate governance norms that require companies to justify CEO salaries, put in place whistle-blower policies and have orderly succession plans.

As per the new corporate governance norms, to be effective from October 1, listed companies require greater oversight of and by independent directors, greater checks on all related party transactions involving promoters and directors and party transactions involving promoters and directors and limits on directorships and remuneration of board members.

According to Saran, the market watchdog keeps on evolving guidelines and policy measures to put in place norms for better corporate governance.

Among others, the new guidelines, finalised after detailed consultations over draft regulations released in January 2013 seek to exclude nominee directors from the definition of independent directors.

Other proposals include compulsory whistle blower mechanism, expanded role of audit committee, prohibition of stock options to independent directors and enhanced disclosure of remuneration policies.

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