Sebi sets up new expert group of 22 members on listing obligations

Committee headed by former RBI deputy governor will advice regulator on corporate governance, harmonisation of listing and post-listing obligations

ronaldo
sports
A Vasudevan Pune
2 min read Last Updated : Sep 05 2024 | 12:36 PM IST
The Securities and Exchange Board of India (Sebi) has set up a 22-member advisory committee to streamline the rules for listing obligations and disclosures. The expert group will be chaired by R Gandhi, former deputy governor of the Reserve Bank of India (RBI). The committee, formed on August 28, will advise Sebi on corporate governance, harmonisation of listing and post-listing obligations, and disclosure requirements.
Other members include NK Dua (joint director in ministry of corporate affairs), Keki Mistry (HDFC Bank's non-executive director), stock exchange heads, proxy advisory firm managing directors, and representatives from industry bodies, corporates, and legal experts.
In June, Sebi proposed 50 changes to simplify disclosure and listing obligations, based on recommendations from a separate expert group comprising 21 members and chaired by SK Mohanty, former Sebi whole-time member.
The Mohanty committee had submitted a 200-page report proposing changes to related party transactions, promoter reclassification, director appointments, IPO eligibility, and disclosure timelines. These proposals aim to bridge gaps and address overlaps in Sebi’s Listing Obligations and Disclosure Requirements and Issue of Capital and Disclosure Requirements regulations.
These two regulations are key to upholding corporate governance and preventing information asymmetry.
Sources said Sebi is likely to take up the recommendations submitted by the Mohanty committee at its next board meeting scheduled for the last week of September.
The expert group proposed a longer promoter lock-in period if funds raised via an IPO were used to repay loans utilised for capital expenditure. It also suggested increasing the timeline for disclosure of litigation or disputes from the existing 24 hours to 72 hours. The regulator has also sought more disclosure of pre-IPO transactions.
To overhaul norms for related party transactions (RPTs), Sebi has suggested several exemptions in the definition, approvals, and half-yearly disclosures. For instance, remuneration and sitting fees paid to directors or senior management could be exempted from disclosures. The panel also suggested that transactions between two public sector enterprises (PSEs) or between a PSE and the state or central government could be exempted from approval under RPTs.

One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Topics :Samajwadi Party 2Aman SehrawatAIADMK TwoGeorge KurianUPSC Exams IndiaRavneet Singh Bittu

Next Story