SEBI corporate governance new rules: Check what capital market regulator has announced for entities with listed debt securities
The Securities and Exchanges Board of India (SEBI) on Tuesday has come out with the new corporate governance rules, applicable for all the listed entities which have also listed their debt securities.
This move comes after the capital market regulator had merged rules pertaining to the issuance of debt securities into a single regulation last month.
In this regard, SEBI had merged ILDS (Issue and Listing of Debt Securities) rules and NCRPS (Non-Convertible Redeemable Preference Shares) rules into a single regulation to be called (Issue and Listing of Non-Convertible Securities) Regulations.
The regulator in a notification said, the provisions related to corporate governance, including composition of board of directors, related party transactions and audit committee, will apply to a listed entit, which also has listed its non-convertible debt securities and has an outstanding value of such debt securities of Rs 500 crore and above.
The other provisions that will apply to such listed entities are corporate governance requirements with respect to subsidiary of listed entities; obligations with respect to independent directors and employees including key managerial persons and promoters, the regulator said in a notification.
It also added the composition of nomination and remuneration committee, stakeholders’ relationship committee and risk management committee, in the provisions.
In case an entity that has listed its non-convertible debt securities triggers the specified threshold of Rs 500 crore during the course of the year, it will have ensure compliance with these provisions within six months from the date of such trigger, SEBI said in notice.
It further said these provisions will be applicable to a ''high value debt listed entity'' on a ''comply or explain'' basis until March 31, 2023 and on a mandatory basis thereafter.
The regulator also has put in various disclosure frameworks for such entities. While it has also amended LODR (Listing Obligations and Disclosure Requirements) rules to give effect to these provisions, which have become effective from September 7, according to the notification.
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09:24 AM IST