Summary: In this article, we analyse recent guidance and enforcement actions by SEBI, which provide valuable insights into the approach of the regulator in interpreting the statutory framework on independent directors while applying it in practice.Continue Reading SEBI’s Take on Independent Directors: On Paper or in Fact?
Related party transactions (“RPTs”)[1] potentially represent an inherent conflict of interest between the interests of listed entities on the one hand and ‘related parties’ on the other. Since Indian listed entities are significantly promoter driven or closely held, SEBI has been constantly reforming the regulatory framework governing RPTs to mitigate the possibility of abuse.Continue Reading SEBI’s Hammer and the RPT Nail: Navigating SEBI’s Principles-Based Oversight of Related Party Transactions
Commitment to social causes is best done voluntarily. Accordingly, corporate social responsibility (CSR) was originally introduced in Section 135 of the Companies Act, 2013 (Companies Act), in keeping with global best practices, to provide a framework to encourage companies to meaningfully contribute to communities.
The framework was premised on the principle that companies would contribute the prescribed amount in good faith and the requirement ‘to explain’ any failure to contribute, in their board report, was considered a sufficient disincentive to ensure compliance.[1]
Continue Reading Corporate Social Responsibility – Less Carrot More Stick