RAJYA SABHA
SEBI vide circular No. SEBI/CFD/DIL/CG/1/2004/12/10 dated October 29, 2004 has issued the revised clause 49 of listing agreements to be entered into by Companies with the stock exchanges. The provisions of the circular have come in to effect from January 1, 2006. Clause 49(IA) thereof stipulates inter alia that where the chairman of the board of directors of the company is a non-executive director, at least one-third of the board should comprise of independent directors and in case he is an executive director, at least half of the board should comprise of independent directors.
SEBI has informed that the circular No. SEBI/CFD/DIL/CG/1/2004/12/10 dated October 29, 2004 has become effective from January 1,2006, and the stock exchanges are required to give their consolidated compliance reports to SEBI by May 31, 2006. Therefore, SEBI has indicated that it would be in a position to find out the compliance level of the companies after receiving the reports from the stock exchanges.
This information was given by Shri Prem Chand Gupta, Minister of Company Affairs in reply to a question raised by Shri Vijay J. Darda in Rajya Sabha here today.
BY/ 10/06
(Release ID :15678)