Securities and
Exchange Board of India (SEBI) is soon expected to come out with new corporate
governance code and also brush up insider trading norms.
Some Main provisions
under new code....
**
All listed companies will have to justify salaries of high executives
**
It will also be mandatory on companies to make disclosure of ratio in
which each of the directors is remunerated as compared to their staff
**
Companies, henceforth, will have to lay in succession plan
**
Companies will have to adopt whistle blower policies
**
There would also be restriction on the number of directorships a person
can hold
Henceforth,
indulgence in unlawful insider's trading activities would attract more severe
punishments
The applicability of prohibition of
insider's trading rules has been made more comprehensive as more categories of
people have been brought under the purview
Under new regime, it
is also proposed that companies should be rated by independent rating agencies
for their level of compliance. This should be done in addition to independent
inspection by SEBI as well as stock exchanges.
No comments:
Post a Comment