SEBI adopts Birla panel report

NEW DELHI, DEC. 8. The Securities and Exchange Board of India today adopted the Kumarmangalam Birla report on corporate governance code for listed companies that calls for a number of mandatory requirements including appointment of independent directors and an audit committee.

The Birla Committee's corporate governance code would be binding for companies seeking to list for the first time and those listed under Group-A in the Bombay Stock Exchange and S&P CNX Nifty before March 2001, an official release said.

Small companies with a minimum capital of Rs. 10 crore or net worth of Rs. 25 crores would have to comply with the code before March 2002, and companies with capital of Rs. 3 crores would require to meet the norms by March 2003.

The SEBI has asked stock exchanges to amend listing requirements and implement the mandatory recommendations on listed companies in phases.

Among the mandatory norms, companies would have to include non- executive independent directors along with executive directors.

Companies would have to form an audit committee to oversee the company's financial reporting, disclosures and adequacy of internal control. The listed companies would mandatorily come up with a board procedure and a compliance report on corporate governance, the release said.

- PTI

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Section  : Business
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