To promote good business practices, capital market regulator Sebi is working on revised listing agreement norms that would include enhanced corporate governance provisions, Sebi's whole-time member Prashant Saran said on Thursday at a conference organised by PHD Chamber of Commerce and Industry.
In February, the Sebi board had approved new corporate governance norms that require companies to justify CEO salaries, put in place whistle-blower policies and have orderly succession plans.
Noting that it is a detailed process, he said it was difficult to give a timeline. According to Saran, Sebi keeps on evolving guidelines and policy measures to put in place norms for better corporate governance.
Under the new corporate governance norms, to be effective from October 1, listed companies require greater oversight of and by independent directors, greater checks on all related party transactions involving promoters and directors and limits on directorships and remuneration of board members.
Among others, the new norms, finalised after detailed consultations over draft regulations released in January 2013, seek to exclude 'nominee directors' from the definition of independent directors.
Other proposals include compulsory whistle-blower mechanism, expanded role of audit committee, prohibition of stock options to independent directors and enhanced disclosure of remuneration policies.