Capital markets regulator Sebi today asked listed companies to submit quarterly compliance report on corporate governance in a prescribed format within 15 days from close of every quarter.
The companies need to make disclosures on quarterly basis, at the end of the fiscal (for the whole of financial year), within six months from end of financial year that can be submitted along with second quarter report.
This circular would come into force with effect from 90 days of notifications of listing regulations i.e. September 2, 2015.
The report will have disclosure pertaining to composition of board of directors as well as the committees and their respective meetings.
In composition of board of directors category, listed firms will have to disclose the name of the director, whether the director is executive, non-executive, independent, nominee, their date of appointments, tenure and whether they hold any position at the director level in other listed entities.
Besides, listed entities will have to disclose about name of the committees — audit, nomination & remuneration, risk management and stakeholders relationship — and their respective members. The firms will also have to inform about dates of the meeting of the committee and whether requirement of quorum met.
In addition, firms will have to make disclosures whether prior approval of audit committee and shareholders were obtained on related party transactions.
Securities and Exchange Board of India (Sebi) said that composition of committee as well as board of director need to be necessarily given in first quarter of each financial year.
“However if there is no change of information in subsequent quarter of that financial year, this information may not be given by Listed entity and instead a statement “same as previous quarter” may be given,” it added.
In the disclosures that need to be submitted by listed entity at the end of the fiscal, Sebi said that firms will have to disclose, on the company’s website, the compliance status whether the board has been composed in accordance with the requirements of Listing Regulations.
Further, listed firms need to report about compliance status related to any contract signed with media firms.
In addition, compliance status need to be disclosed related to details of business, appointment of independent directors, code of conduct of board of directors and senior management personnel, establishment of vigil mechanism/ whistle blower policy among others.
In the compliance report that need to be submitted by listed entity at the end of six months from the fiscal-end, firms will have to disclose information related to copy of the annual report, directors, corporate governance and business responsibility reports.