SEBI initiates adjudication proceedings against 20 companies
for non-compliance of Clause 49 norms
SEBI receives quarterly reports from Stock Exchanges regarding compliance with Clause 49 of the listing agreement. Clause 49 deals with corporate governance by companies listed on the exchanges. Based on these reports, SEBI has initiated adjudication proceedings against a total of 20 companies from the private sector and the public sector. Of the 20 Companies, five companies are public sector companies against whom proceedings have been launched for non-compliance with provisions relating to Board composition. The remaining 15 companies are in the private sector. Out of these 15 private sector companies, proceedings have been initiated against three companies for non-compliance with almost all the major provisions of Clause 49, against two companies for non-compliance with provisions like Board/Audit committee composition and CEO/CFO certification, while for the balance 10 companies, proceedings have been initiated for non-submission of compliance reports on Clause 49 to the Stock Exchanges.
Mumbai
September 11, 2007