SEBI Strengthens Corporate Governance: New Guidelines on Auditors and Transactions

SEBI has extended the deadline for public comments on revised guidelines regarding annual secretarial compliance reports, auditor appointments, and related party transactions. These proposals aim to enhance corporate governance standards for listed companies by incorporating stricter regulations and requirements for transparency, qualification, and compliance.

The Securities and Exchange Board of India (SEBI) has extended the deadline to March 7, 2025, for public input on new proposals aimed at tightening corporate governance standards among listed firms. This move comes after a February 7 consultation paper suggested enhanced guidelines for secretarial compliance reports, auditor appointments, and related party transactions.

The proposals include making the Annual Secretarial Compliance Report (ASCR) a mandatory component of the annual report, improving compliance confirmation, and instituting stricter auditor qualifications. SEBI seeks to align these with existing provisions in the Companies (Audit and Auditors) Rules, 2014.

Additionally, SEBI aims to boost transparency by standardizing auditor appointment disclosures. New thresholds are also proposed for related party transactions, ensuring oversight from audit committees, especially concerning subsidiaries with varying financial backgrounds.