Acceptance of Kotak Committee recommendations by SEBI: Additional “To Do” for listed entities
SEBI has accepted the recommendations of the Kotak Committee proposing various amendments in SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The article in this issue of Corporate Amicus hence aims to summarize certain significant “To Dos” for a listed entity and its managerial personnel. Elaborating various amendments in respect of composition and meetings of Board, related party transactions, constitution and role of the committees of board, and other management and administrative affairs of the listed entity, it is stated that acceptance of the majority of the recommendations of the Committee shows SEBI’s strong desire for enhancing the corporate governance practices of listed companies in India. According to the authors, the in-spirit compliance of the Committee’s recommendations would require the listed companies to gear up well before the implementation date (1-4-2019) and undertake an in-depth analysis of their internal governance practices for smooth implementation of new set of compliances...
Ordinance and Notifications
- Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018, expected to further strengthen the Insolvency Resolution Framework in the country, receives Presidential assent.
- Limited Liability Partnership (Amendment) Rules, 2018 notified to mandate designated partner to make application electronically for obtaining DPIN under Limited Liability Partnership Act, 2008.
- Companies (Significant Beneficial Owner) Rules 2018 notified.
Ratio decidendi
- Section 7 application cannot be filed once winding up proceedings initiated against a corporate debtor – NCLAT
- Liquidation order passed due to bad debts and no insolvency resolution – NCLAT
- Restraint order against accessing securities market in respect of certain noticees in the matter of United Spirits Limited – SEBI
