Sebi for Over­haul of Firms’ Board Gov­er­nance

The Economic Times - - Economy: Macro, Micro & More -

The Se­cu­ri­ties and Ex­change Board of In­dia (Sebi) is in favour of a ma­jor over­haul of the way boards of listed firms dis­charge their du­ties, in­clud­ing for ap­point­ment and re­moval of di­rec­tors, and also wants their au­dit com­mit­tee to be em­pow­ered to iden­tify fu­ture risks. While a 'guid­ance note' was is­sued last month by the Sebi on board eval­u­a­tion at listed com­pa­nies, there is a view that the reg­u­la­tor should come out with a new set of reg­u­la­tions to en­sure greater com­pli­ance. The move as­sumes sig­nif­i­cance in the wake of re­cent board­room bat­tle at the Tata group and the con­tro­versy sur­round­ing the re­ported dif­fer­ences between some pro­mot­ers and the top man­age­ment at In­fosys. “The con­cept of board eval­u­a­tion is very nascent in In­dia and forc­ing the com­pa­nies to fol­low a new set of rules in this re­gard may not be war­ranted at this stage," a top of­fi­cial said.

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