Key Provisions Of Listing Agreement

The Listing Department of Stock Exchange monitors companies` compliance with listing agreement provisions, including timely payment of annual listing fees, reporting of results, participation models and corporate governance reports on a quarterly basis. Clause 49 of the listing agreement applies to companies that wish to be listed on the stock market. This clause contains both binding and non-binding provisions. The main binding provisions are: in the wake of the Satyam scandal, SEBI has become increasingly strict with regard to disclosure standards and the implementation of the provisions of Article 49 in order to change transparency and accountability in the country at sea. The Companies Act provided appropriate legal support for these standards. On the road to transparency and accountability, there are laws on the mandatory rotation of factor controllers and audit firms. A legal auditor cannot provide non-audit services to a company. Auditors are required to report fraudulent acts that have been found in the performance of their duties. In addition, the law requires that at least one-third of a company`s board of directors be made up of independent directors. Independent directors have been prohibited from accepting stock options or remuneration. In order to ensure greater transparency, additional advertising standards, such as formal evaluation of board performance, filing statements with the Corporate Registrar regarding any changes to the equity positions of project proponents, were mandatory. The introduction of a new accounting system can also help to control potential accounting fraud. The legal status of the Serious Fraud Investigation Office (SFIO) has also been proposed.

Investigative report submitted by the SFIO with the court for design fees will be treated as a report filed by the police. With these measures, transparency and accountability of corporate governance in India are better off than before the yam sate scandal. Among the main non-compulsory provisions are: “Corporate governance aims to maintain a balance between economic and social objectives and between individual and local objectives. The governance framework is intended to promote the efficient use of resources and to require responsibility for the management of these resources. The aim is to coordinate the best interests of individuals, businesses and society. -Sir Adrian Cadbury, UK, Commission Report: Corporate Governance 1992 The fundamental criterion on which the entire list of agreements is based is corporate governance. Currently, there are 54 clauses in the list agreement and all on the basis of that concept. In addition, there is a clause dealing specifically with corporate governance, namely: Clause 49. Listing involves the admission of securities to trading on a recognized exchange. Securities can be limited companies, central or state governments, quasi-state institutions and other financial institutions/capital companies, municipalities, etc.