Securities and Exchange Board of India plans to crack down on the corporates if they fail to comply with the Clause 49 of the Listing agreement on corporate governance norms by the end of this calendar year.
Delivering the keynote address in a seminar on 'Corporate Governance- shift from compliance to delivery values,' M Damodaran, chairman, Sebi, said that all companies are expected to comply with the Clause 49 by December 31, 2005.
Failure to do so will attract a daily penalty amount relative to the company size, he said. "Spending on compliance should be treated by companies as investment to earn goodwill, not an expenditure," said Damodaran.
N Sundararajan, secretary, Ashok Leyland Limited, recommended that Sebi may review the non-statutory requirements relating to whistleblowers policy and to specify differential degrees of regulation based on ownership.
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