SEBI has initiated reforms to improve corporate governance.
A total of 65 companies will have to increase the number of independent directors by April 1, 2019, while as many as 165 companies of the top 500 entities will have to separate the role of MD or chief executive officer from that of the chairman, according to data from Prime Database.
Companies that currently have no segregation between MD/CEO and chairperson include Adani Ports, BPCL, BHEL, Coal India, General Insurance Corp., Wipro, Hero Motocorp, HPCL, TV Today Network, RIL and PVR among others.
The three-tier structure of a company that includes shareholders, board and the management need to be separate and independent of each other and hence SEBI has segregated the roles of MD/CEO with that of the chairman.
Further, there are at least 155 companies among the top 500 listed ones that would have to appoint a woman director by April 1, 2019, and if the universe of companies is expanded to the top 1,000, then 336 companies will have to include a woman director in the board by April 1, 2020.
The list of companies that will have to induct a woman director within the next one year include Ambuja Cements, Avenue Supermarts, Bharti Airtel, Castrol India, DLF, Fortis Healthcare, Glenmark Pharmaceuticals, Godrej Industries, HDFC, ICICI Prudential Life Insurance and Reliance Industries along with most of the banking entities like State Bank of India, Andhra Bank, Bank of India, Canara Bank and Central Bank of India.
On Wednesday, the capital markets regulator approved most of the recommendations of the Uday Kotak Committee that was formed to suggest ways to strengthen corporate governance at listed entities.
The market watchdog decided to reduce the maximum number of directorships for individuals from 10 to seven in a phased manner while expanding the eligibility criteria for such directors. The new norms also require at least one woman independent director in the top 500 listed entities by market capitalisation by April 1, 2019, and in the top 1,000 listed entities, by April 1, 2020.
CG reforms initiated
By IndianMandarins - 2018-03-30 08:00:48
SEBI has initiated reforms to improve corporate governance.
A total of 65 companies will have to increase the number of independent directors by April 1, 2019, while as many as 165 companies of the top 500 entities will have to separate the role of MD or chief executive officer from that of the chairman, according to data from Prime Database.
Companies that currently have no segregation between MD/CEO and chairperson include Adani Ports, BPCL, BHEL, Coal India, General Insurance Corp., Wipro, Hero Motocorp, HPCL, TV Today Network, RIL and PVR among others.
The three-tier structure of a company that includes shareholders, board and the management need to be separate and independent of each other and hence SEBI has segregated the roles of MD/CEO with that of the chairman.
Further, there are at least 155 companies among the top 500 listed ones that would have to appoint a woman director by April 1, 2019, and if the universe of companies is expanded to the top 1,000, then 336 companies will have to include a woman director in the board by April 1, 2020.
The list of companies that will have to induct a woman director within the next one year include Ambuja Cements, Avenue Supermarts, Bharti Airtel, Castrol India, DLF, Fortis Healthcare, Glenmark Pharmaceuticals, Godrej Industries, HDFC, ICICI Prudential Life Insurance and Reliance Industries along with most of the banking entities like State Bank of India, Andhra Bank, Bank of India, Canara Bank and Central Bank of India.
On Wednesday, the capital markets regulator approved most of the recommendations of the Uday Kotak Committee that was formed to suggest ways to strengthen corporate governance at listed entities.
The market watchdog decided to reduce the maximum number of directorships for individuals from 10 to seven in a phased manner while expanding the eligibility criteria for such directors. The new norms also require at least one woman independent director in the top 500 listed entities by market capitalisation by April 1, 2019, and in the top 1,000 listed entities, by April 1, 2020.
