Mumbai, Aug 27: In order to strengthen corporate governance practices, Securities and Exchange Board of India on Tuesday asked listed companies to comply with amended listing guidelines, including improved financial disclosures and proceeds of public offerings by March 2004. The market regulator has accepted recommendations of corporate governance panel headed by Infosys chairman N R Narayana Murthy.
The amended clause 49 in the listing agreement of the stock exchanges would be applicable to listed entities with share capital of Rs three crore and above or networth of over Rs 25 crore, SEBI said in a release.
The revised norms have strengthened responsibilities of audit committees, improved disclosures about related party transactions and compensation to non-executive directors, adoption of formal code of conduct and "whistle blower" policy, the release added.
Some sub-clauses of revised clause 49 would be reviewed following amendments to the Companies Act to harmonise corporate governance clause in listing agreement with those in the act, it added. Bureau Report