SEBI new corporate governance norms _ 1st October 2014

The new Corporate governance norms for listed companies will be implemented from October 1 2014 .

The new rules would include provisions such as

 

1. Requirement by companies to get shareholders’ approval for related party transactions,

2. Setting up a whistleblower mechanism,

3. Disclosures on pay packages

4. One woman director on company boards.

5. Expanding the role of the audit committee,

6. Restrictions on related party transactions involving promoters and directors

7. Ban on stock options to independent directors.

8. Nominee directors' will not come under the definition of independent directors

9. Put curbs on remuneration of board members and

10 Greater disclosure of remuneration policies.

11.To provide the option of facility of e-voting to shareholders on all resolutions proposed to be passed at

      general meetings.

Through this regulation, the market regulator is trying to align the listing norms with the new Companies Act and is aimed at better investor protection by ensuring equitable treatment for minority and foreign shareholders. It also aims to encourage companies to adopt best practices on corporate governance.

The Companies Act, 2013 was enacted on August 30, 2013 which provides for a major overhaul in the corporate governance norms for all companies.

After this The market regulator is also in the process of finalising the new regulation called 

Sebi (Listing Obligations and Disclosure Requirements) Regulations, 2014 that would replace current listing agreement through which listed companies are being governed by the stock exchange.This regulation will have all the rules relating to listing and corporate governance and it will be uniformly followed across exchanges.The regulation updates and consolidates provisions relating to listing and disclosure requirements in respect of all kinds of securities. I