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SEBI rules
March 30 , 2018
2226 days
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- The Securities and Exchange Board of India (SEBI) has tightened the corporate governance norms for listed companies by accepting most of the recommendations of the Uday Kotak Committee which is constituted for corporate governance.
- It has decided to reduce the maximum number of directorships to seven from 10 in a phased manner while expanding the eligibility criteria for directors.
- The SEBI has mandated top 500 companies by market capitalisation to separate the position of chairperson from that of managing director (MD) or chief executive officer (CEO) from April 01, 2020.
- SEBI also suggested to split the roles of CEO, chairman and directors.
- The SEBI has reduced maximum number of directors in a listed firm to 8.
- The regulator has also enhanced the roles of the audit committee along with those of the nomination and remuneration committee and the risk management committee at companies.
- SEBI has amended the eligibility criteria for stocks to be included in the derivatives segment. last such amendment was done six years ago.
- This committee was constituted under kotak bank’s chairman Uday Kotak for the improvement of institutional structure of the companies. It gave its recommendation on October.
- For mutual funds (MFs), the regulator has reduced the cap for expenses charged for each scheme.
- The maximum limit has been reduced from 20 basis points of the daily net asset value of the schemes to 5 basis points,
- It would benefit the investors in the form of marginally higher net asset value (NAV) of the scheme.
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