The information to be updated include details of agreements with the media companies and their associates.
The move will help investors get <g data-gr-id="47">latest</g> information about the companies, including about their businesses. “The listed entity shall update any change in the content of its website within two working days from the date of such change in content,” the Securities and Exchange Board of India (Sebi) said.
The listed firms also need to ensure that the contents of the website are correct. The directive is a part of Sebi’s new listing regulations, which have replaced the provisions contained in the erstwhile listing agreement. The earlier agreement required the listed companies to keep their websites <g data-gr-id="60">updated,</g> but was silent on <g data-gr-id="59">periodicity</g> of the updation of content. While almost all listed companies have got websites, the information contained therein gets updated with a lag effect in many cases. In case of <g data-gr-id="57">change</g> in <g data-gr-id="58">name</g> of a company, Sebi has mandated that both the new and old names would need to be mentioned on the website for a continuous period of one year. The listed entity will have to maintain a functional website containing basic information like details of its business, terms and conditions of appointment of independent directors, composition of various committees of board of
directors and code of conduct of <g data-gr-id="55">board</g> of directors and senior management personnel.
In addition, they have to disseminate information related to details of establishment of vigil mechanism/ <g data-gr-id="44">whistle blower</g> policy, criteria on dealing with related party transactions, policy for determining ‘material’ subsidiaries, number of programmes attended by independent directors and number of hours spent by these directors in such programmes. Besides, Sebi has asked listed companies to put details of agreements entered into with the media companies and their associates, schedule of analyst or institutional investor meet and presentations made by these entities to them and complete copy of the annual report including balance sheet, profit and loss account, directors and corporate governance report and shareholding pattern.
In addition, listed entities will have to publish the information, in at least one English newspaper, circulating in substantially whole India and in one daily newspaper in the vernacular language, pertaining to notice of the board meeting where financial results would be considered. Further, the listed firms will have to publish financial earnings along with the opinion if any, expressed by the auditor within 48 hours of <g data-gr-id="53">conclusion</g> of the meeting and statements of deviations/ variations.
Companies can now accept funds from relatives of directors
Relaxing the norms for private companies, the government has allowed them to accept funds from relatives of the directors. The latest move would also <g data-gr-id="82">makes</g> it little easier for companies to raise money for meeting their funding requirements.
Easing the Companies (Acceptance of Deposits) Rules, the Corporate Affairs Ministry has said that in case an entity receives money from <g data-gr-id="85">relative</g> of a director then the same should be disclosed in the board's report. In this regard, the ministry, which is implementing the Companies Act, 2013, has issued a notification.
"... the director of the company or relative of the director of the private company, as the case may be, from whom money is received, furnishes to the company at the time of giving the money, a declaration in writing to the effect that the amount is not being given out of funds acquired by him by borrowing or accepting loans or deposits from others and the company shall disclose the details of money so accepted in the board's report," it said. With the latest move, the definition of 'deposit' excludes money received from a director or a relative of the director of the private company.
Besides, the definition of free reserves has been expanded by including securities premium account, according to the notification dated September 15.
"This means that all companies that are accepting deposits (based on prescribed percentage of
paid-up capital and free reserves) will have the benefit of increase in their borrowing limits, and enhanced ability to accept deposits," leading consultancy PwC India said in a note.