• 9964432222
  • Mail Us
  • Appointment
  • Locate Us
  • Chat Now
  • Courses
  • Login
  • Register
Manifest IAS
JournalsOfIndia
Manifest Learning Academy
  • Home
  • SNIPPETSfor Prelims
  • ARTICLESfor Mains
  • BROWSEBY SOURCE
  • DOWNLOADS
No Result
View All Result
  • Home
  • SNIPPETSfor Prelims
  • ARTICLESfor Mains
  • BROWSEBY SOURCE
  • DOWNLOADS
No Result
View All Result
JournalsOfIndia
No Result
View All Result
Home Economy

Uday Kotak Committee on Corporate governance

March 26, 2021
in Economy
Reading Time: 3 mins read
0
Uday Kotak Committee on Corporate governance
3.2k
VIEWS
Share on WhatsAppShare on TelegramShare on Facebook
image_pdfMake PDF

About Kotak Committee

  • It was constituted in 2017 under  the chairmanship of Uday Kotak 
  • Primary objective: Improving standards concerning corporate governance of listed companies in India.
  • Composition: Kotak Committee was represented by different stakeholders, including the government, the industry, stock exchanges, academicians, proxy advisors, professional bodies, lawyers, etc.  
  • This committee was requested to provide recommendations on diverse issues such as ensuring independence in spirit of independent directors and their active participation in the functioning of the company, and improving safeguards and disclosures pertaining to related party transactions.
  • It was also asked to make recommendations on accounting and auditing practices by listed companies, board evaluation practices, disclosure and transparency related issues and addressing issues faced by investors on voting and participation in general meetings.
  • SEBI accepted some of the recommendations of the committee, which submitted the report in the same year of its formation

Key recommendations of the committee

Proposals accepted without modifications

Following are proposals accepted by SEBI without any modifications:

  • Reduction in the maximum number of listed entity directorships from 10 to 8 by April 01, 2019 and to 7 by April 1, 2020
  • Expanding the eligibility criteria for independent directors
  • Enhanced role of the audit committee, nomination and remuneration committee and risk management committee
  • Disclosure of utilization of funds from QIP/preferential issue
  • Disclosures of auditor credentials, audit fee, reasons for the resignation of auditors
  • Disclosure of expertise/skills of directors
  • Enhanced disclosure of related party transactions (RPTs)
  • Mandatory disclosure of consolidated quarterly results with effect from FY20
  • Enhanced obligations on the listed entities with respect to subsidiaries
  • Secretarial Audit to be mandatory for listed entities and their material unlisted subsidiaries

Proposals accepted with modifications

  • Minimum six directors in the top 1,000 listed entities by market capitalization by April1, 2019 and in the top 2000 listed entities, by April 1, 2020
  • At least one woman independent director in the top 500 listed entities by market capitalization by April 1, 2019 and in the top 1000 listed entities, by April 1, 2020
  • Separation of CEO/MD and Chairperson (to be initially made applicable to the top 500 listed entities by market capitalization w.e.f. April 1, 2020)
  • Separation of CEO/MD and Chairperson (to be initially made applicable to the top 500 listed entities by market capitalization w.e.f. April 1, 2020)
  • Top 100 entities to hold AGMs within 5 months after the end of FY 2018-19 i.e. by August 31, 2019
  • Webcast of AGMs will be compulsory for top 100 entities by market capitalization a w.e.f. FY19
  • Shareholder approval for Royalty/brand payments to related party exceeding 2% of consolidated turnover (instead of the proposed 5%)

Note: Some of the proposals made by committee were rejected by the board and referred to  other agencies. The proposals that were rejected or referred to other agencies were mostly those which infringed on other regulatory territories. 

image_pdfMake PDF
Source: Business Standard
Tags: News PaperPrelims

Related Posts

GST Appellate Tribunal (GSTAT)

GST Appellate Tribunal (GSTAT)

March 28, 2023
Rubber board’s mobile app–CRISP

Rubber board’s mobile app–CRISP

March 28, 2023
IMF bailout

IMF bailout

March 28, 2023
Government removed the LTCG tax benefit from debt mutual funds

Government removed the LTCG tax benefit from debt mutual funds

March 25, 2023
Impact of Fed rate on the Economy

Impact of Fed rate on the Economy

March 24, 2023
World Happiness Report 2023

World Happiness Report 2023

March 23, 2023
Mundra Petrochemical project

Mundra Petrochemical project

March 21, 2023
IREDA gets ‘Infrastructure Finance Company’ status from RBI

IREDA gets ‘Infrastructure Finance Company’ status from RBI

March 15, 2023
Revamped MSME Competitive (LEAN) scheme

Revamped MSME Competitive (LEAN) scheme

March 14, 2023
Bhutan graduates from UN list of Least Developed Countries (LDC)

Bhutan graduates from UN list of Least Developed Countries (LDC)

March 13, 2023
Please login to join discussion

Our Offline Classroom Student

CONGRATULATIONS TO 2021 TOPPERS !!!

Rank 171 Kumar Shivashish
Rank 250 Sahithya
Rank 263 Sumit Kumar Thakur
Rank 311 Deepak Ramachandra Shet
Rank 455 Ravinandan B M

March 2023
MTWTFSS
 12345
6789101112
13141516171819
20212223242526
2728293031 
« Feb    

Browse by Category

  • Agriculture
  • Disaster Management
  • Economy
  • Environment
  • Ethics
  • Foreign Affairs
  • Geography
  • Governance
  • History
  • Law & Policy
  • Opinion
  • People in News
  • Places in News
  • Science & Tech
  • Security
  • Society
  • Sports
  • Uncategorized

Browse by Tags

AIR All India Radio BBC Business Line Business Standard dow Down to Earth DownToEarth DTE Economic Times ET FAO Financial Express GS-1 GS-2 GS-3 GS-4 Hindustan Times IE India & the world Indian express Indiatoday India today Kurukshetra Livelihoods portal LiveMint Mains News Newspaper News Paper PIB Prelims PRS India RSTV Science Reporter Survey The Hindu The India Express The Indian Express The Print the wire Times of India TOI TOPPERS Yojana
JournalsOfIndia

Our vision is to orient the readers to grasp the facts objectively and analyse critically. In the rush of reaching first to the readers, the websites miss the balanced opinion, which is the need of the hour. We aim to reach the readers with more crispness, preciseness and relevance. We bring the articles in UPSC way for the civil services aspirants and the Wisest Way for general readers.

Categories

  • Agriculture
  • Disaster Management
  • Economy
  • Environment
  • Ethics
  • Foreign Affairs
  • Geography
  • Governance
  • History
  • Law & Policy
  • Opinion
  • People in News
  • Places in News
  • Science & Tech
  • Security
  • Society
  • Sports
  • Uncategorized

Browse by Tag

AIR All India Radio BBC Business Line Business Standard dow Down to Earth DownToEarth DTE Economic Times ET FAO Financial Express GS-1 GS-2 GS-3 GS-4 Hindustan Times IE India & the world Indian express Indiatoday India today Kurukshetra Livelihoods portal LiveMint Mains News Newspaper News Paper PIB Prelims PRS India RSTV Science Reporter Survey The Hindu The India Express The Indian Express The Print the wire Times of India TOI TOPPERS Yojana

Newsletter

The most important UPSC news and events of the day.

Get Journals daily newsletter on your inbox.

© 2020 JournalsOfIndia - A free initiative by Manifest Team.

  • Login
  • Sign Up
  • Home
  • SNIPPETS
  • ARTICLES
  • BROWSE
  • DOWNLOADS
No Result
View All Result

© 2020 JournalsOfIndia - A free initiative by Manifest Team.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In