November 29, 2007
The Resident Editor
2nd Floor, Mahalaxmi Engg. Estate
L. J. Cross Road No.1
Mumbai – 400 016
This has reference to the article “Rules eased for public issues of power companies” published in the Hindustan Times, Mumbai edition dated November 23, 2007, in which it has, inter-alia, been stated as under:
“Sources said the power utilities would also get a go-ahead from the Securities and Exchange Board of India, which, in Clause 49 of its listing requirements, mandates over half the Board should be independent directors if a company has a Chairman appointed by shareholders. If the Board is presided by an independent Chairman, the percentage of independent directors needs to be 50 percent. Sources said the exemption was being given to these public sector utilities with the rider that they would adhere to the Clause 49 guidelines within 12 months of listing.”
In this regard we would like to inform as follows:
“The requirements as regards corporate governance as contained in Clause 49 of the listing agreement are applicable uniformly to all listed companies and companies proposing to get listed, whether they are in the public or private sector. SEBI has not given any exemption to any listed company or any company proposing to get listed from the requirements of Clause 49 of the listing agreement, nor is there any proposal for the same.
It is requested that the above clarification may be published in your esteemed newspaper.
for Securities and Exchange Board of India
General Manager (Communications)