Company secretaries are optimistic about the proposed changes in Sebi’s Listing Obligations and Disclosure Requirements (LODR) and Issue of Capital and Disclosure Requirements (ICDR).
The capital market regulator had floated a consultation paper on June 26 seeking public comments on multiple changes relating to filings and disclosures, board of directors and promoters.
The issues discussed in the paper also involved related party transactions, disclosure of material events, strengthening corporate governance in listed entities, disclosure of proforma financials during public issues, pre-IPO transactions and promoter lock-ins among others.
Some of the most notable changes proposed include enabling a single filing system for corporate announcements between stock exchanges, permitting listed entities to conduct virtual or hybrid shareholder meetings permanently and changes related to secretarial audits among others.
“A key change which is relevant to our profession is the proposal of making approval of shareholders necessary for the appointment of secretarial auditors,” B. Narasimhan, president, Institute of Company Secretaries of India, told The Telegraph on Friday.
At present, secretarial auditors’ appointment only requires board consent, while statutory auditors’ appointment requires shareholder consent as well.