regulator’s listing agreement amends go
further than the Companies Act
Stricter related party rules and director requirements under
Sebi’s revised listing agreement will create new challenges for
the country’s public companies.
The changes are intended to bring the listing requirements
in line with India’s new Companies Act, but it is clear that prioritising
corporate governance could come at a cost.
Protecting minority shareholders is a theme throughout the
Securities and Exchange Board of India's (Sebi) amendments to clause 49 of the agreement, which
listed companies must comply with by October 1.
Arun Balasubramanian, co-head of Freshfields Bruckhaus
Deringer’s India group, said that one of the
overarching principles behind the Companies Act seems to be to
balance out significant promoter influence, while adding