Sebi Proposes Revamped Governance Standards for Listed Firms

The Securities and Exchange Board of India (Sebi) has proposed a revised format for annual compliance reports and eligibility criteria for auditors at listed firms. Aimed at enhancing transparency, these changes also include monetary thresholds for Related Party Transactions (RPTs). Public comments are invited until February 28.

The Securities and Exchange Board of India (Sebi) has put forward significant revisions to the corporate governance framework for listed companies. A key focus is on a new format for annual secretarial compliance reports, aiming to ensure companies adhere to high compliance and transparency standards.

Among the notable proposals are the introduction of eligibility criteria for auditor appointments. Sebi suggests that the qualifications and experience of statutory auditors should align with companies’ size and complexity, akin to existing rules under the Companies (Audit and Auditors) Rules 2014.

Sebi is also advocating for standardizing disclosures for auditor appointments and imposing monetary thresholds for Related Party Transactions (RPTs). These measures are designed to enhance oversight and ensure consistent governance practices across subsidiaries of listed entities.