To ensure stricter compliance, capital market regulator Sebi will soon make clauses related to corporate governance in listing agreements into regulations.
Currently, clause 49 -- pertaining to corporate governance -- in listing agreements between companies and stock exchanges is monitored by the bourses. Once this clause is made into regulations, it would come under the direct oversight of Sebi.
Securities Exchange and Board of India chief U K Sinha has said the clause 49 of the listing agreement would soon be brought out as regulations by it, according to an official release.
Speaking at an event organised by the ICAI he said corporate governance is looked into “as a letter of law rather than the spirit behind it”.