Mumbai, 9 February (IANS). To improve corporate governance in listed companies, the Securities and Exchange Board of India (SEBI) has proposed a revised format for the annual secretary compliance report (ASCR).
This includes a proposal to include eligibility criteria for appointment of auditors and monetary boundaries for the approval of concerned party transactions.
The purpose of these proposals is to ensure that listed companies maintain high standard of compliance and transparency in their transactions.
SEBI has proposed changes for improvement in the format and content of ASCR, aimed at more clearly confirming compliance with securities law.
The regulator has suggested exemption related to corporate administration certificates and secretarial auditor reports when the ASCR is attached in the annual report. The proposals include better mechanisms and ASCR to make the compulsory part of the annual report.
In order to determine the criteria of eligibility for appointment of statutory auditors, SEBI has proposed to include the same provisions as the Company Rules 2014 in the LODR regulations, which ensure that the qualification and experience of the auditors listed unit size and Complicate complexity.
SEBI has recommended the monetary limit for the RPT to be done by the subsidiaries of the listed institutions to determine whether the audit is required from the audit committee or not.
In addition, SEBI has proposed to clarify the definition of RPT to ensure that transactions associated with subsidiaries of listed institutions are in line with RPT norms.
The SEBI LODR criteria suggested an amendment to clarify whether the discounts for RPT are applied to listed and non-listing institutions between holding and complete-owned subsidiaries.
SEBI has sought comments from the common people on the proposals till 28 February.
-IANS
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