The SEBI has said that the top 100 companies must constitute
risk management committees immediately, in the with its revised corporate
governance norms.
Risk management committees identify, evaluate and mitigate all risks associated with business, interest rates, currencies and other challenges companies face.
A SEBI circular on Thursday said the boards of these companies have to define the roles and responsibilities of the committee and may delegate monitoring and reviewing of the risk management plan to the panel. All other companies have to implemented the revised corporate governance norms by October 1. The norms will be implemented through stock exchanges under clause 49 of the listing agreement.
The amend norms will apply to all prospective related party transactions. For existing material related party contracts or arrangements that are likely to continue after FY15, companies are required to seek shareholder approval at the first annual meeting after October 1. They also free to seek the share holder nod prior to the meeting.
A related party transaction is a transfer of resources or obligations between related parties, regardless of whether a price is charged. Parties are considered to be related if at any time during the reporting period one party has the ability to control the other or exercise significant influence over the other party in making financial and operating decisions.
SEBI clarified the norms would be applicable to banks, financial institutions and issuers only to the extent the it does not violate any norms of their primary regulator – RBI / IRDA. This is not applicable to mutual funds, SEBI said.
Listed companies also have to compulsorily provide an E-Voting to shareholder for all resolutions. For share holder with out access to e-voting, companies have to seek assent o dissent in writing through a postal ballot.
The monitoring cells of stock exchanges have been mandated to track compliance on disclosure. They must report to SEBI within 60 days of the end of each quarter.
Risk management committees identify, evaluate and mitigate all risks associated with business, interest rates, currencies and other challenges companies face.
A SEBI circular on Thursday said the boards of these companies have to define the roles and responsibilities of the committee and may delegate monitoring and reviewing of the risk management plan to the panel. All other companies have to implemented the revised corporate governance norms by October 1. The norms will be implemented through stock exchanges under clause 49 of the listing agreement.
The amend norms will apply to all prospective related party transactions. For existing material related party contracts or arrangements that are likely to continue after FY15, companies are required to seek shareholder approval at the first annual meeting after October 1. They also free to seek the share holder nod prior to the meeting.
A related party transaction is a transfer of resources or obligations between related parties, regardless of whether a price is charged. Parties are considered to be related if at any time during the reporting period one party has the ability to control the other or exercise significant influence over the other party in making financial and operating decisions.
SEBI clarified the norms would be applicable to banks, financial institutions and issuers only to the extent the it does not violate any norms of their primary regulator – RBI / IRDA. This is not applicable to mutual funds, SEBI said.
Listed companies also have to compulsorily provide an E-Voting to shareholder for all resolutions. For share holder with out access to e-voting, companies have to seek assent o dissent in writing through a postal ballot.
The monitoring cells of stock exchanges have been mandated to track compliance on disclosure. They must report to SEBI within 60 days of the end of each quarter.
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