Changes to the revised Clause 49 of the Listing Agreement

Press Release
Securities and Exchange Board of India
Jan 13, 2006
PR No.: 27/2006

PRESS RELEASE

 

PR-27/2006

 

Changes to the revised Clause 49 of the Listing Agreement

 

SEBI, vide its circular dated January 13, 2006 has made certain amendments to the revised Clause 49 of the Listing agreement on corporate governance, which came into effect on January 1, 2006. These amendments, which were approved by the SEBI Board in its meeting held on December 30, 2005 are as follows:

 

 

     

     

  • Sitting fees paid to non-executive directors as authorized by the Companies Act, 1956 would not require the approval of shareholders.

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  • Certification of internal controls and internal control systems by CEO/ CFO would be for the purpose for financial reporting.
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The full text of the circular is available on the website: www.sebi.gov.in  

 

Mumbai

January 13, 2006

     

  • The maximum time gap between two Board meetings has been increased from three months to four months.