To ease process of implementing stronger corporate governance norms by listed firms, regulator Sebi today relaxed various provisions of the new law, especially for smaller companies, and extended the deadline for appointing at least one woman director to April 1, 2015.
Changes have been made to the new regulatory regime, which would come into effect from next month, following numerous representations received by the regulator with regard to these regulations that would vastly change the way listed companies function and are regulated in the country.
While amendments have been made to various provisions of this Corporate Governance Code to align them with the relevant sections of the new Companies Act, the deadline would remain unchanged at October 1, 2014, except for requirement of a minimum one woman director on the boards of listed companies. The listed companies would have time till April 1 next year to comply with the woman director-related provision.
Sebi has also exempted smaller companies — those having equity share capital of up to Rs 10 crore and networth not exceeding Rs 25 crore, as also listed on SME platforms of the stock exchanges — from the mandatory compliance to the new Code “for the time being”.
Announcing the changes, Sebi said it has “received representations from market participants including companies and industry associations, highlighting certain practical difficulties in ensuring compliance, seeking clarifications on interpretation of certain provisions and suggesting various options to ease the process of implementation.”