Sebi forms committee on corporate governance
Aiming to improve standards of corporate governance of listed companies, markets regulator Sebi on Friday set up a committee under the chairmanship of Uday Kotak, chief of Kotak Mahindra Bank.
The panel include representatives of Corporate India, stock exchanges, professional bodies, investor groups, chambers of commerce, law firms, academicians and research professionals, and Sebi.
The panel headed by Kotak, the executive vice chairman and managing director of Kotak Mahindra Bank, would have to submit the report within a period of four months, Securities and Exchange Board of India (Sebi) said in a statement.
The committee would make recommendations to Sebi on ensuring independence in spirit of independent directors and their active participation in functioning of the company and steps for improving safeguards and disclosures pertaining to related party transactions. Besides, the panel would suggest measures for addressing issues faced by investors on voting and participation in general meetings and ways for improving effectiveness of board evaluation practices.
Further, it will also suggest Sebi on issues pertaining to disclosure and transparency.
Earlier in April, Sebi had come out with detailed corporate governance norms for listed companies providing for stricter disclosures and protection of investor rights, including equitable treatment for minority and foreign shareholders.
The new rules, which would be effective from October 1, require companies to get shareholders' approval for related party transactions, establish whistle blower mechanism, elaborate disclosures on pay packages and have at least one woman director on their boards.
Sebi's norms are aligned with the new Companies Act and are aimed to encouraging companies to "adopt best practices on corporate governance".