SEBI Board Meeting | Other proposed amendments
● Stock exchanges authorized to impose fines on violations
● Exchanges also authorized to freeze shareholding of Promoter and Promoter Group entities
* In non-compliant entity
* In other securities
● Persistent non-compliance to lead to suspension.
Amendments to Regulations
● Public consultation initiated to amend:
* SEBI Buyback Regulations
* SEBI Takeover Regulations
● Transfer of securities shall not be processed unless securities are held in dematform with depositories
● Intended to curb fraudulent transfers.
Auditors and audit-related
● Disclosures of auditor credentials, audit fee, reason for auditor resignation etc.
● Secretarial audit to be mandatory for listed entities and their material unlisted subsidiaries as under SEBI LODR
● Enhanced disclosure of Related Party Transactions (RPTs), and related parties to be permitted to vote against RPTs
● Mandatory disclosure of consol. quarterly results from FY19-20.
Enhanced disclosure and obligations
● Disclosure on utilization of funds from QIP / Pref. Issue
● Obligations on listed entities w.r.t. subsidiaries
● Shareholder approval required for royalty/brand payments exceeding 2% of consol turnover to related parties
● For top 100 entities by market cap
* To hold AGMs within 5 months after the end of FY19
* Webcast of AGMs compulsory.
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