Corporate governance: new format for compliance report

Corporate governance: new format for compliance report

The logo of the Securities and Exchange Board of India (SEBI) is seen on the facade of its headquarters building in Mumbai (Reuters File Photo)

Markets regulator Sebi on Tuesday came out with a new format for compliance report on corporate governance to be submitted by listed companies to stock exchanges.

In a circular, the regulator prescribed new format for disclosures to be made on quarterly basis, annual basis for the whole of the financial year and within six months from end of financial year that can be submitted along with second quarter report.

"In view of the revised timelines under the amended regulations, the circular shall come into force with effect from the quarter ended September 30, 2019," Sebi said.

The regulator, in September 2015, had asked listed companies to submit compliance report on corporate governance in a prescribed format with disclosures pertaining to composition of board of directors as well as the committees and their respective meetings, among others.

However, requisite amendments were made in Sebi (Listing Obligations and Disclosure Requirements) Regulations, 2015 to implement the recommendations of committee on corporate governance.

Thereby, "some of these amendments necessitate changes to the format of the quarterly compliance report," Securities and Exchange Board of India noted.

As per the new format for the quarterly report to be submitted within 15 days from close of each quarter, details related to number of independent directorship and chairperson of the firm will have to be disclosed along with the disclosures about other members of board of directors.

Additionally, date of appointment and cessation of various committees, details of number of independent directors and directors present at the meeting of board of directors and meeting of committees will have to be given.

In the report to be submitted at the end of six months after the end of financial year, status of presence of the chairperson of the stakeholder relationship committee at the annual general meeting needs to be specified besides the existing disclosure requirements.

The annual compliance report on corporate governance is related to disclosure in terms of listing regulations.