SEBI guidelines for Corporate Governance

Corporate governance refers to the way an organization is governed by it. It is the method that enables businesses to maintain a balance between their internal relations and stakeholders, i.e. shareholders, management, consumers, suppliers, financiers, government and community, etc., to provide their external parties with material and non-material information. Governance implies power, and corporate governance implies corporate control and management. SEBI is a regulatory authority that was set up on 12 April 1992. SEBI was set up primarily to curb malpractice and protect the interests of its investors. Its main purpose is to monitor the operations of the stock exchange and at the same time to ensure that the capital market grows healthily. SEBI has come up with comprehensive Corporate Governance Principles to ensure good corporate governance.

1. According to the new regulations, businesses are expected to seek shareholder approval for RPT (Related Party Transactions), it has set up a whistleblower system, a strong requirement to include at least one woman on the board as director, and it has also established compensation package disclosures.
2. The regulatory body is amending Clause 35B of the Listing Agreement. Now in compliance with the amended provision, listed companies are expected to provide their shareholders with the option of e-voting anything proposed or accepted at general meetings. Those who do not have access to the e-voting facility should be given written votes on the Postal Ballot to cast their votes. The clause had to be modified so that the terms of the listing agreement could be matched with the provisions of the 2013 Companies Act. In doing so it is possible to include an additional provision to improve the quality of corporate governance in India concerning listed companies. 
3. To improve the Corporate Governance Structure for Listed Companies in India, Clause 49 of the Listing Agreement was also amended by SEBI. The amended provision restricts the eligibility of independent directors for any kind of stock option. Whistleblower policy is now included in the updated provision whereby managers and workers may disclose any unethical activity, any fraud, or whether the company's Code of Conduct is infringed. The Audit Committee is also strengthened by the change, which will also provide an assessment of the risk management system and internal financial regulation, which will track inter-corporate lending and investment. The amendment also allows all businesses to develop a policy for 'content subsidiaries' to be defined and that will be published online.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.