Sebi Mulls Changes in Auditors' Appointment Norms for Cos

To strengthen corporate governance at listed firms, Sebi has proposed a revised format for annual secretarial compliance report, eligibility criteria for the appointment of auditors and inclusion of monetary thresholds for Related Party Transactions (RPTs) approvals.

- MPOST BUREAU

NEW DELHI:

These proposals are aimed at ensuring that listed entities maintain high standards of compliance and transparency in their dealings.

In its consultation paper, Sebi has proposed changes to improve the format and content of the Annual Secretarial Compliance Report (ASCR), aiming for more explicit confirmation of compliance with securities law.

The suggestions have been made for exemptions related to corporate governance certifications and secretarial auditor reports when ASCR is attached to the annual report. The proposals include better enforcement mechanisms and making the ASCR a mandatory part of the annual report.