SEBI Forms Committee on Corporate Governance (Download PDF)

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SEBI has formed a Committee on Corporate Governance who will be headed by Uday Kotak as chairperson who is currently executive vice chairman and managing director of Kotak Mahindra Bank. The main objective to form this committee is to improve standard of corporate governance governance.

Image of Uday Kotak

Image of Uday Kotak

Image of Uday Kotak

Key facts

  • The committee will also have Corporate India, stock exchanges, professional bodies, investor groups, chambers of commerce, law firms, academicians and research professionals and SEBI representatives.
  • The panel have to submit the report within four months.
  • The committee have make recommendations on:

    • Ensuring independence in spirit of independent directors and their active participation in functioning of the company.
    • The steps that are need to be taken for improving safeguards and disclosures pertaining to related party transactions.
    • To suggest measures for addressing issues faced by investors on voting and participation in general meetings
    • The steps required for improving effectiveness of board evaluation practices.
    • Suggest on issues pertaining to disclosure and transparency.

Background

  • SEBI have given detailed corporate governance norms for listed companies previously in April this year.
  • The new norms of new Companies Act would be effective from 1st October.
  • The new norms will encourage companies to accept best practice on corporate governance.
  • SEBI’s new norms provide stricter disclosures and security of investor rights such as equitable treatment for minority and foreign shareholders.

SEBI

  • Securities and Exchange Board of India (SEBI) was founded in 1988 and got statutory mandate and powers under the SEBI Act, 1992.
  • Its main aim is to protect the interests of investors in securities and also to promote the development and regulation of securities market.

SEBI’s Key functions are:

  • Regulate stock exchanges and other securities markets
  • Registering and regulating the working of intermediaries which are associated with securities markets in any manner
  • Registering and regulating the working of venture capital funds and collective investment schemes including mutual funds
  • Promoting and regulating self-regulatory organizations and keeping out fraudulent and unfair trade practices associated to securities markets SEBI

- Published/Last Modified on: June 8, 2017

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