The Securities and Exchange Board of India (Sebi) has set up a committee to recommend on better corporate governance standards at listed companies.
The 21-member panel is to give its report in four months. It will be chaired by Uday Kotak, executive vice-chairman and managing director of Kotak Mahindra Bank. There will be representatives from corporate India, stock exchanges, legal firms, Sebi and proxy advisory firms.
Some of the other members are Keki Mistry, chief executive at HDFC; Rishad Premji, chief strategic officer at Wipro and R Shankar Raman, chief financial officer, Larsen & Toubro. Also Ashish Chauhan, chief executive of the BSE exchange; Zia Mody, managing partner at AZB Partners, and Cyril Shroff, managing partner at Cyril Amarchand Mangaldas.
The committee is to suggest measures for “ensuring independence in spirit of independent directors and their active participation in functioning of the company”, Sebi said.
The panel will also advise on improving of safeguards and disclosures pertaining to related party transactions. It will also deliberate on issues in accounting and auditing practices at listed companies. Also, on improving the effectiveness of board evaluation practices.
It is to address the issues faced by investors on voting and participation in general meetings. Beside, disclosure and transparency related issues.
This comes in the wake of several high-profile corporate tussles. Including one between Tata Sons and its former chairman, Cyrus Mistry, and another between Infosys Technologies’ founders and its current management. The responsibilities and appointment process of independent directors had come under focus during these tussles. Earlier this year, Sebi had issued a detailed note to improve board evaluation practices at India Inc.