What does class 49 of Listing Agreement say?

The term ‘Clause 49’ refers to clause number 49 of the Listing Agreement between a company and the stock exchanges on which it is listed (the Listing Agreement is identical for all Indian stock exchanges, including the NSE and BSE). A limit was placed on the number of committees that a director could serve on.

Which of the report included Clause 49 in the Listing Agreement?

The recommendations of Kumar Mangalam Birla Committee, constituted by SEBI, led to the addition of Clause 49 in the Listing Agreement in February 2000. These recommendations, aimed at improving the standards of corporate governance are divided into mandatory and non mandatory recommendations.

What are some of the important elements of Clause 49 agreement?

This clause has both mandatory and non-mandatory provisions. Key Mandatory provisions are as follows: Composition of Board and its procedure – frequency of meeting, number of independent directors, code of conduct for Board of directors and senior management; Audit Committee, its composition, and role.

What is Clause 49 A explain?

The Securities Exchange Board of India (SEBI) added Clause 49 to the Listing Agreement in 2000. The clause was enacted with the aim of improving corporate governance of all companies listed on the Indian stock exchanges including the NSE and BSE.

When does Clause 49 of listing agreement come into effect?

The New Clause, which will be effective from 1 October 2014, serves the following objectives: align the provisions of Listing Agreement with the provisions of the newly enacted Companies Act, 2013 and also provide additional requirements to strengthen the corporate governance framework for listed companies in India.

What was amendment to Clause 49 of SEBI listing agreement?

SEBI, vide Circular No. CFD/POLICY CELL/2/2014 dated April 17, 2014, has amended the provisions of Clause 49 of Listing Agreement relating to Corporate Governance, mandating, inter-alia, that the Board of Directors of listed entities shall have an optimum combination of executive and non-executive directors with at least one woman director.

How does a company comply with Clause 49?

Corporate Governance-: In order to comply with clause 49 (1) a company must adhere with some following principles. 1. Right of Shareholder- As shareholders are the ultimate owner of the company, the company should seek to protect and facilitate the exercise of right of shareholders.

Which is the revised Clause of Equity Listing Agreement?

The full text of the revised Clause 35B of the Equity Listing Agreement is given in Part-A of the circular. The full text of the revised Clause 49 of the Equity Listing Agreement is given in Part-B of the circular. 4. Applicability 4.1 The revised Clause 49 would be applicable to all listed companies with effect from October 01, 2014.