Corporate Governance in listed Companies – Clause 49 of the Listing Agreement

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..... isting agreement of the Stock Exchanges. These principles of corporate governance were made applicable in a phased manner and all the listed companies with the paid up capital of ₹ 3 crores and above or net worth of ₹ 25 crores or more at any time in the history of the company, were covered as of March 31, 2003. SEBI has issued six circulars on the subject of corporate governance inter-alia detailing provisions of corporate governance, its applicability, reporting requirements etc. which are as follows Sr. no. Reference no. Subject Date 1 SMDRP/POLICY/CIR-1 .....

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..... the Securities and Exchange Board of India Act, 1992 read with section 10 of the Securities Contracts (Regulation) Act 1956, SEBI has revised the clause 49 of the Listing agreement. The revised clause 49 contains both, the sub clauses of existing clause 49 as well as new sub-clauses. All Stock Exchanges are hereby directed to immediately replace the existing Clause 49 of the listing agreement ( issued vide circular dated February 21, 2000, September 12, 2000, March 16, 2001 and 31 December 2001) by the revised Clause 49 given in Annexure I. The revised clause 49 also specifies the reporting requirements for the company. 3. Please note that some of the sub-clauses of the revised clause 49 (given in Annexure I) shall be suitably .....

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..... und Schemes. 2. The companies which are required to comply with the requirements of the revised clause 49 shall submit a quarterly compliance report to the stock exchanges as per sub clause (IX) (ii), of the revised clause 49, within 15 days from the quarter ending 31st March 2004. The report shall be submitted either by the Compliance Officer or the Chief Executive Officer of the company after obtaining due approvals. 3. The Stock Exchanges shall ensure that all provisions of corporate governance have been complied with by the company seeking listing for the first time, before granting any new listing. For this purpose, it will be satisfactory compliance if these companies have set up the Boards and constituted comm .....

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