Securities and Exchange Board of India (Sebi) on Tuesday initiated proceedings against 20 listed companies, including five public sector entities, for violating corporate governance regulations.
The regulator has started adjudication proceedings against the companies on the basis of quarterly reports received from stock exchanges regarding compliance with Clause 49 of the Listing Agreement that deals with corporate governance, a Sebi release said,declining to give the names of the companies. Sebi began proceedings against the five public sector companies for not appointing adequate number of independent directors on their board.
As far as private sector firms are concerned, proceedings have been initiated against three companies for non-compliance with almost all major provisions of Clause 49 and against 2 companies for not constituting board or audit committees.