Sebi chief UK Sinha on Monday said the capital market regulator will go ahead with implementation of the new corporate governance norms for listed companies from October 1.
“Listing agreement regulations will kickstart on October 1,” Sinha told reporters on the sidelines of a conference. Sebi, in April, had issued 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 require companies to get shareholders' approval for related party transactions, establish whistle blower mechanism, elaborate disclosures on pay packages and have at least a woman director on their boards.
They are aligned with the new companies Act and are aimed at encouraging companies to “adopt best practices on corporate governance”. The capital market regulator has amended clauses 35B and 49 of the listing agreement. Now, under the changed 35B norms, listed companies are required to provide the option of facility of e-voting to shareholders on all resolutions proposed to be passed at general meetings.
Under clause 49, pertaining to corporate governance, listed companies have to get shareholders' nod for related party transactions. All these new stipulations will be effective from October 1.