India: OECD report - company groups

The OECD has published a report, working with SEBI, on company groups in India: see here (pdf). The report, to quote directly from its foreword, "presents an overview of company groups in India, including group structures (e.g. hierarchical structures and cross-shareholdings), promoters, and related party transactions. It also covers the legal and regulatory approaches to addressing issues relating to company groups".

India: SEBI consultation - independent directors

Noting that concerns remain regarding the efficacy of independent directors as part of the governance framework, SEBI - the Securities and Exchange Board of India - has published for consultation various reform proposals including, most notably, new procedures for appointment and removal: see here. 

India: SEBI publishes stewardship code

At the end of last month, SEBI published a circular containing a stewardship code for mutual funds and all categories of alternative investment funds, in respect of their investment in listed equities: see here. The circular also notes that SEBI, IRDAI and PFRDA are examining a proposal for more wide-reaching stewardship principles in India.

India: SEBI's review of the regulatory framework governing credit rating agencies

The Securities and Exchange Board of India began a consultation on the regulatory framework applicable to credit rating agencies last autumn: see here. An update was provided yesterday, including the publication of new guidelines: see here.

India: SEBI governance committee publishes report and recommendations

The committee formed by the Securities and Exchange Board of India to provide advice on a range of governance matters - with a view to enhancing the standard of governance amongst listed companies - has published its report and recommendations: see here. The recommendations are wide-ranging. An increase in the minimum number of directors a listed company must have is proposed as well as an increase in the proportion of independent directors.  An increase in the minimum frequency of board and committee meetings is also proposed.  The Committee also recommends that a Stewardship Code should be introduced.

India: SEBI consults on the credit rating agency regulatory framework

The Securities and Exchange Board of India is consulting on the regulatory framework applicable to credit rating agencies: see here.

India: SEBI establishes corporate governance committee

The Securities and Exchange Board of India has established a corporate governance committee and asked it to provide advice, within four months, on a range of governance matters including the independence "in spirit" of independent directors, the effectiveness of board evaluation practices and participation and voting at general meetings: see here.

India: SEBI guidance note on board evaluation

According to the Securities and Exchange Board of India, board evaluation in India is at a "nascent stage". For this reason, and against the background of the requirements in the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements)Regulations, 2015, SEBI has issued a guidance note on the nature and operation of board evaluation: see here (pdf).

Update (15 January 2017) - governance matters were discussed at the most recent meeting of SEBI's International Advisory Board: see here.

India: SEBI consultation: corporate governance issues in compensation agreements

The Securities and Exchange Board of India has published a short consultation paper titled Corporate Governance Issues in Compensation Agreements, seeking views on a proposal to amend the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015: see here (pdf).

India: SEBI to consult on remuneration rule changes

At its most recent meeting, SEBI - the Securities and Exchange Board of India - agreed that a consultation should be undertaken concerning remuneration in listed companies: see here. More specifically, the consultation will seeks view on possible amendments to the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, including adding new provisions designed to enhance the role of shareholders.

India: governance norms - SEBI amendments to Clause 49 of the Equity Listing Agreement

The Securities and Exchange Board of India has published several amendments to Clause 49 of the Equity Listing Agreement (which sets out various corporate governance norms; a revised version was published earlier this year): see here (pdf). Amongst the amendments are those concerning the companies subject to Clause 49 as well as a delay in the provision requiring boards to have at least one female director.

India: SEBI review of continuous disclosure regime for listed companies

The Securities and Exchange Board of India has published for comment a revised version of Clause 36 - containing the core principles on the disclosure of price sensitive and material information by listed companies - that will be included in the Listing Agreement and/or draft SEBI (Listing Obligations and Disclosure Requirements) Regulations 2014: see here (pdf).

India: SEBI International Advisory Board discusses corporate governance norms

The International Advisory Board (IAB) of the Securities and Exchange Board of India held its fourth meeting a few days ago: see here. Amongst the matters discussed were corporate governance norms in India. The IAB has suggested that there should be different governance standards for large and complex groups and it also called for more focused enforcement of corporate governance norms.

India: SEBI publishes new corporate governance norms

Earlier this year the Securities and Exchange Board of India met and agreed changes to the Equity Listing Agreement in respect of the corporate governance norms for listed companies. These new norms, which are found in Clauses 35B and 49, have now been published: see here (pdf). The revised Clause 49 applies to all listed companies from October 1, 2014.

India: SEBI approves new corporate governance norms for listed companies

The Securities and Exchange Board of India met today and agreed changes to the Listing Agreement in respect of the corporate governance norms for listed companies. The proposed amendments take effect on 1 October this year. A summary is available here. The changes include an expanded role for the audit committee and the requirement for all boards to have at least one female director.

India: Insider trading law - proposed reforms published for consultation

The High Level Committee formed to review the SEBI (Prohibition of Insider Trading) Regulations, 1992, has published its report: see here (pdf). Views are sought on proposed changes to the legal framework governing the prohibition of insider trading, including widening the definition of 'insider'. An overview of the proposed changes is available here.

India: SEBI publishes consultation paper on corporate governance norms

The Securities and Exchange Board has published a consultation paper seeking views on the governance requirements for listed companies: see here (pdf). The paper is published against the background of the recent passing of the Companies Bill 2012 by the Lok Sabha and, a few months earlier, the publication of the Godrej Committee's guiding principles of corporate governance (see here, pdf). The paper identifies additional rules and provisions that go beyond those in the Bill. For example, views are sought on whether certain companies should be required to have a 'small shareholder director' (i.e., a director appointed by the company's smaller shareholders) and whether shareholder approval should be required for directors' remuneration above a certain limit.