SEBI Proposes New Governance Rules for Listed Companies

The Securities and Exchange Board of India (SEBI) has proposed new regulations to enhance Corporate Governance at listed companies.

The proposals include revising the Annual Secretarial Compliance Report (ASCR), setting eligibility criteria for auditor appointments, and introducing monetary limits for Related Party Transactions (RPTs). SEBI suggests making ASCR a mandatory part of annual reports and aligning auditor selection rules with the Companies (Audit and Auditors) Rules, 2014. It has also recommended stricter scrutiny of auditors by audit committees. For RPTs, SEBI has proposed approval thresholds based on turnover and monetary limits.

The regulator aims to improve transparency and compliance in corporate practices.

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