New Delhi, April 17: The Securities and Exchange Board of India (Sebi) today indicated that it was working on revised listing agreement norms for companies to ensure transparency and better corporate governance.
“Sebi keeps on evolving guidelines and policy measures to put in place norms for better corporate governance and it is very much on its radar to evolve guidelines for forging new listings agreements,” Sebi whole-time member Prashant Saran said at a conference organised by the PHD Chamber of Commerce and Industry.
On the appointment of independent directors for fair corporate governance, Saran said corporate governance was not tangible in India.
“Yet one cannot brush aside the issue of independent directors in view of their participatory importance in the corporate boards,” he said.
“Transparent corporate governance cannot be performed and talked about in an environment in which the bosses insist their subordinates to better perform or ‘do your number anyway’ because in such an atmosphere the voice of conscience gets smaller and smaller,” he said.
At the event, J. Joseph, additional secretary in the corporate affairs ministry, said the department of company affairs would set up a National Company Law Tribunal in this fiscal.
Corporate governance rules
Sebi today came out with detailed corporate governance norms for listed companies providing for stricter disclosures and protection of investor rights, including the equitable treatment of minority and foreign shareholders.
The new rules, which will be effective from October 1, require companies to get shareholders’ approval for related party transactions, establish a whistle blower mechanism, make elaborate disclosures on pay packages and have at least a woman director on their boards.
The norms issued today are aligned with the new companies act and are aimed at encouraging companies to “adopt best practices on corporate governance”.