Thursday, July 30, 2015

Revised Clause 49 of the Listing Agreement

The need for ethical governance was felt required after the recent events, particularly in the United States. The United States reacted to these events and enacted the Sarbanes Oxley Act, 2002 which brought out fundamental changes in Corporate Governance's every aspect. The revised clause 49 of the Listing Agreement has broadened the scope of Corporate Governance in India and provides for whistle blower policy, compliance report with the issue of certificate of compliance, widened definition of independent director, disclosure requirements etc.

The need was felt to amend the Listing Agreement in order to align the provisions of the Listing Agreement with the new Companies Act. Also, to strengthen the Corporate Governance framework for listed companies in India. This revised clause has broadened the scope of Corporate Governance in listed companies in India and should provide for a good governance framework.
This article aims to analyse the various heads discussed under Clause 49 of the Listing Agreement with special emphasis on the amended parts and to bring in a comparative analysis with the Companies Act, 2013.

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