Sebi talks tough on corporate governance

Market regulator Securities and Exchange Board of India on Saturday threatened to impose stiff penalties on companies failing to comply with corporate governance norms of appointing requisite number of independent directors by the end of this year.

"I expect companies in public sector and private sector to find independent directors by December 31. There could be penalties after that and that could be costly," Sebi chairman M Damodaran told industry captains at an Assocham seminar in New Delhi.

Looking into the difficulties of India Inc and public sector undertakings, Sebi had extended the last date to December 31 from the earlier deadline of April for compliance of having a requisite number of independent directors in company boards, as envisaged in Clause 49 of Listing Agreement.

See full Article.