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

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....evised clause 49 of the listing agreement, which has come into effect from January 1, 2006. SEBI had received requests/suggestions to bring about clarifications on certain provisions of the clause. After examining the same, it has been decided to modify the existing Clause 49 by including the following provisions: Mandatory provisions: 1.   If the non-executive Chairman is a promoter or is related to promoters or persons occupying management positions at the board level or at one level below the board, at least one-half of the board of the company should consist of independent directors. 2.   Disclosures of relationships between directors inter-se shall be made in specified documents/f....

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....ircular in the next Monthly Development Report. III. This circular is issued in exercise of powers conferred by sub-section (1) of Section 11, read with sub-section (2) of Section 11A, of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. IV. This circular is available on the SEBI website at www.sebi.gov.in.     Yours faithfully, Parag Basu ANNEXURE I Clause 49 of the Listing Agreement shall be amended as follows - 1.      In item (I), (a)   in para (A), (i) after sub-clause (ii), the fo....