SEBI Proposes New Rules to Strengthen Corporate Governance for Listed Companies

The SEBI has proposed strict new rules to improve the corporate governance at listed companies. The main purpose is to make strict compliance and enhance transparency.

Key changes include a revised Annual Secretarial Compliance Report (ASCR) format and mandatory ASCR in annual reports, and the audit committee should carefully evaluate the qualifications for signing partners.

SEBI aims to improve transparency in auditor selections and introduce monetary limits for Related Party Transactions (RPTs) involving subsidiaries.

To ensure better compliance, the SEBI has also suggested clarifying the definition of RPTs.

SEBI has invited public comments on these proposals until February 28.