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

SEBI Updates Listing Agreement: New Clause 49 Enhances Corporate Governance for Listed Companies with Revised Guidelines.

The circular issued by SEBI mandates all stock exchanges to update the Listing Agreement by replacing the existing Clause 49 with a revised version, focusing on corporate governance in listed companies. This revised clause includes specific guidelines on board composition, audit committees, and disclosure requirements. It applies to companies seeking initial listing and those already listed with significant capital or net worth. Companies must submit quarterly compliance reports, and stock exchanges must establish monitoring cells to ensure adherence. The revised clause is applicable to various listed entities, excluding mutual funds, and aims to enhance transparency and accountability in corporate governance practices.