Sebi tests new governance concepts on a non-mandatory basis

The Securities and Exchange Board of India (Sebi) is testing new governance concepts like board evaluation, group governance units and disclosure of strategies in the Indian markets.

To begin with, the markets regulator has implemented these measures on a non-mandatory basis. Experts feel these could be made compulsory if proved effective. Some of these concepts are operational in the developed world and are considered a key tool in empowering of minority investors.
 

Sebi, in a circular on Thursday, said companies may consider disclosures on board evaluation. Further, companies with unlisted subsidiaries need to consider establishing a group governance policy. More