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Tuesday, 16 July 2019

Modification in Corporate Governance _Reg. 27(2) of SEBI (LODR) Reg. 2015




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SEBI Modify Format of Corporate Governance under Regulation 27(2) of SEBI  (LODR) Regulations, 2015 vide SEBI Circular no.  SEBI/HO/CFD/CMD1/CIR/P/2019/78 dated 16.07.2019

Circular on Modification of circular dated September 24, 2015 on ‘Format for compliance report on Corporate Governance to be submitted to Stock Exchange (s) by Listed Entities’ 


·         Background:

Regulation  27(2)  of  SEBI  (LODR)  Regulations,  2015  (“Listing   Regulations”), specifies  that a listed  entity  shall  submit a quarterly  compliance  report  on corporate  governance  in  the format  specified  by  the  Board  from  time  to  time  to recognized Stock Exchange(s) within 15 days from close of each quarter.

SEBI Vide Circular No. CIR/CFD/CMD/5/2015  dated  September  24,  2015, SEBI had specified  the format  for  compliance  report  on  Corporate  Governance by  listed entities.

·         Applicability:

The Circular shall come into force with effect from the quarter ended 30.09.2019.

Following are changes made in Corporate Governance (Reg. 27 of SEBI (LODR) Regulations 2015:

1) Under Annexure 1 : Composition of Board of Directors:

New Columns added seeking details of :
a) PAN & DIN is added.
b)Initial Date of Appointment
c)Date of Re- Appointment
d) No. of Independent Directorship in listed entities including this listed entity[in reference to proviso to regulation 17A(1)]

Affirmations required:
Whether Regular chairperson appointed?
Whether Chairperson is  related to managing director or CEO?

Notes:

$PAN of any director would not be displayed on the website of Stock Exchange

&Category of directors means executive/non-executive/independent/Nominee. if a director fits into more than one category write all categories separating them with hyphen

* tobe filled only for Independent Director. Tenure would mean total period from which Independent director is serving on Board of directors of the listed entity in continuity without any cooling off period.

  
2) Under Annexure II : Composition of Committees:
New Columns added seeking details of:

a) Whether Regular chairperson appointed

3) Under Annexure III : Meeting of Board of Directors
New Columns added seeking details of :

a) Whether requirement of Quorum met*
b) Number of Directors present*
c) Number of independent directors present*

Notes: * to be filled in only for the current quarter meetings



3) Under Annexure IV. Meetings of Committees:
New Columns added seeking details of :

a) Number of Directors present*
b) Number of independent directors present*

Notes:

* This information has to be mandatorily be given for audit committee, for rest of the committees giving this information is optional


Complete Circular can be accessed with the following details:

1) Format to be submitted by the listed entity at the end of the financial year (for the whole of the financial year-  Disclosure on the website in terms of Listing Regulations)
2. Annual Affirmations
3. Format to be submitted by the listed entity at the end of 6 months after the end of the financial year along-with the second quarter's report of next financial year
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