{"id":22529,"date":"2019-07-31T18:19:26","date_gmt":"2019-07-31T12:49:26","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=22529"},"modified":"2021-09-17T16:14:27","modified_gmt":"2021-09-17T10:44:27","slug":"compliance-report-on-corporate-governance","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/compliance-report-on-corporate-governance\/","title":{"rendered":"SEBI\u2019s Latest Format for Compliance Report on Corporate Governance"},"content":{"rendered":"<p class=\"has-drop-cap\">SEBI recently introduced a new format for <strong>compliance report on corporate governance<\/strong>, which has to be submitted by the listed companies to the designated stock exchanges. The circular by SEBI states the new format for disclosures to be made by such listed companies on<\/p>\n\n\n\n<ul><li>quarterly <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Basis&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;In finance, the &amp;quot;basis&amp;quot; is a term with several applications, including representing the difference between the spot price and the future contract price of an asset, which is vital in investment(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/basis\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>basis<\/a>, <\/li><li>annual basis at the end of the financial year (for the complete financial year) and <\/li><li>within six months from the end of the financial year that can be submitted along with the report of the second quarter.<\/li><\/ul>\n\n\n\n<blockquote class=\"mb-5\" style=\"border: 1px solid;font-size:17px; padding: 10px; box-shadow: 5px 10px 8px #888888; background: #759CE3; ; color: #fff;\"><strong> <b>For your Knowledge:<\/b> Listed Companies are the companies whose shares are traded or listed on an official stock exchange. It must comply with the listing requirements of that exchange.     <\/strong><\/blockquote>\n\n\n\n<p>Before moving ahead, let&rsquo;s get\nfamiliar with the corporate governance and the amount of importance it holds in\nIndia<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Corporate Governance in Indian Scenario<\/h2>\n\n\n\n<p>Corporate governance is a\nprocedure that is in interest for companies based on certain structures and\nprinciples through which a company or a corporation is governed.&nbsp;It&nbsp;makes\nsure&nbsp;that the corporate works in a way that it is ultimately able to\nachieve the preferred goals. Further, it makes the firms accountable towards\neach stakeholder that may include directors, shareholders, employees,\nconsumers, etc.<\/p>\n\n\n\n<p>In simple words, <a href=\"https:\/\/enterslice.com\/learning\/unpacking-the-scope-of-corporate-governance-trends\/\">corporate governance<\/a> generally refers to practices by which an organization is controlled, directed, and administered. The primary purpose of Corporate Governance is to make such conditions where a company&rsquo;s directors and the managers should have to do something on behalf of the interest of the company and its various stakeholders. <\/p>\n\n\n\n<p><\/p><h3><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/enterslice.com\/learning\/sebi-guidelines-for-making-public-offer\/\">SEBI Guidelines for Making Public Offer<\/a><\/mark>.<\/h3>\n\n\n\n<h2 class=\"wp-block-heading\">Importance of Corporate Governance <\/h2>\n\n\n\n<p>Corporate governance has an important role to play in every company or organization. The significance of <a href=\"https:\/\/enterslice.com\/learning\/corporate-governance-in-india\/\">Corporate Governance<\/a> in a company\/corporation can be explained as under:<\/p>\n\n\n\n<ul><li>It ensures that there is a level of confidence among the corporation and its stakeholders which, ultimately results in the betterment of the organization.<\/li><li>For good corporate governance, the corporation should have an active group of independent directors employed in the company, which, as a result, makes a certain amount of faith and confidence in the <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Market&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;A market is a structured environment, either physical or virtual, where buyers and sellers convene to trade goods and services. This trading hub operates based on the principles of supply and(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/market\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>market<\/a>.<\/li><li>Foreign institutional stakeholders consider corporate governance as a great tool before investing in any of the corporations. <\/li><li>Companies having good corporate governance are totally away from all kind of scams and any kind of bad exposure.<\/li><li>Corporate Governance is of the most important criteria in foreign investors list.<\/li><li>Good corporate governance sets a positive control on the market share price of a company.<\/li><li>If the company from the past is maintaining a clean record and reputation on the corporate governance desk, then it is much easy for the corporations to fund capital at very reasonable costs.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Corporate Governance Framework in India<\/h2>\n\n\n\n<p>The regulatory Frameworks on\nCorporate Governance which govern the Indian Corporations are:<\/p>\n\n\n\n<ul><li>The Companies Act of 2013.<\/li><li>Guidelines of Securities and Exchange Board of India (SEBI).<\/li><li>Standard Listing Agreement of <a href=\"https:\/\/enterslice.com\/learning\/listing-securities-stock-exchange\/\">Stock Exchanges<\/a>.<\/li><li>Companies (Indian <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Accounting&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Accounting is the language of business, serving as the backbone of financial management and decision-making. It involves the systematic recording, analysis, and reporting of financial(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/accounting\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>Accounting<\/a> Standards) Rules of 2018.<\/li><li>Secretarial Standards as per ICSI.<\/li><li>Accounting Standards by the Institute of Chartered Accountants of India (ICAI).<\/li><li>Companies (Indian Accounting Standards) Rules of 2015.<\/li><li>Companies (Indian Accounting Standards) (<a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Amendment&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;An &amp;quot;amendment&amp;quot; refers to the formal change or correction of a legal document, often involving additions, variations, or deletions to address irregularities or clarify points in an agreement.(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/amendment\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>Amendment<\/a>) Rules of 2016 and Companies (Accounting Standards) (Amendment) Rules of 2016.<\/li><\/ul>\n\n\n\n<p><\/p><h3><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/enterslice.com\/learning\/corporate-governance-in-india\/\">How Corporate Governance in India affects Shareholders<\/a><\/mark>.<\/h3>\n\n\n\n<h2 class=\"wp-block-heading\">Background of Compliance Report on Corporate Governance<\/h2>\n\n\n\n<p>In September 2015, SEBI had asked listed companies to submit a compliance report on corporate governance in a prescribed format with disclosures relating to the composition of the board of directors as well as the committees and their respective meetings, among others. However, the required changes were made in <a href=\"https:\/\/enterslice.com\/investment-advisors-registration-with-sebi\">SEBI<\/a> (Listing Obligations and Disclosure Requirements) Regulations, 2015 to implement the recommendations of the committee on corporate governance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Effective Date of the Circular<\/h2>\n\n\n\n<p>SEBI has stated that the circular\nshall come into force from the quarter ended September 30, 2019<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">New Format for Compliance Report and various disclosures<\/h2>\n\n\n\n<p><strong>As per the recently introduced new format:<\/strong><\/p>\n\n\n\n<ul><li>For the quarterly report being submitted within 15 days from close of each quarter, information connected with the total number of independent directorships as well as the chairperson of the corporation shall have to be disclosed along with the disclosures regarding other members of the board of directors.<\/li><li>Secondly, the dates of appointment as well as the cessation of various committees, particulars of the number of independent directors and directors present at the meeting of the board of <a href=\"https:\/\/en.wikipedia.org\/wiki\/Board_of_directors\">directors<\/a> and meeting of committees are required to be given.<\/li><\/ul>\n\n\n\n<p>\n\n\n\nIn the report which is\nrequired to be submitted at the end of 6 months after the end of the financial\nyear, the status of the attendance of the chairperson of the stakeholder\nrelationship committee at the annual general meeting requires to be stated apart\nfrom the existing disclosure requirements. The annual compliance report on\ncorporate governance is correlated towards disclosure in terms of listing\nregulations.\n\n\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"<p>SEBI recently introduced a new format for compliance report on corporate governance, which has to be submitted by the listed companies to the designated stock exchanges. The circular by SEBI states the new format for disclosures to be made by such listed companies on quarterly <a class=\"glossaryLink\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Basis&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;In finance, the &amp;quot;basis&amp;quot; is a term with several applications, including representing the difference between the spot price and the future contract price of an asset, which is vital in investment(...)&lt;\/div&gt;\" href=\"https:\/\/enterslice.com\/learning\/terms\/basis\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>basis<\/a>, annual basis at the end of the financial year [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":22543,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1599,1],"tags":[2629],"acf":{"service_id":"0"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>SEBI\u2019s new Format for Compliance Report on Corporate Governance<\/title>\n<meta name=\"description\" content=\"SEBI new format for Compliance Report on Corporate Governance, which has to be submitted by the listed companies to the designated stock exchanges.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/compliance-report-on-corporate-governance\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SEBI\u2019s new Format for Compliance Report on Corporate Governance\" \/>\n<meta property=\"og:description\" content=\"SEBI new format for Compliance Report on Corporate Governance, which has to be submitted by the listed companies to the designated stock exchanges.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/compliance-report-on-corporate-governance\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:author\" content=\"enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2019-07-31T12:49:26+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-09-17T10:44:27+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/07\/Compliance-Report-on-Corporate-Governance.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Narendra Kumar","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/nk-1.jpg","authorDescription":"Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.","postViews":504,"readingTime":3,"nextPost":{"id":22536,"slug":"advantages-of-one-person-company"},"prevPost":{"id":22526,"slug":"nbfc-business-model"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/07\/Compliance-Report-on-Corporate-Governance.jpg","postTerms":"SEBI Registration","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/22529"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=22529"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/22529\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/22543"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=22529"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=22529"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=22529"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}