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Clause 49 of The Listing Agreement
Clause 49 of The Listing Agreement
Shruti
Clause 49 of the Listing Agreement to the Indian stock exchange came into effect from 31 December 2005. It has been formulated for the improvement of corporate governance in all listed companies.
CII CG 1996
CLAUSE 49 2000
CHANDR A 2003
BIRLA 1998
MURTHY 2002
Disclosure Listed companies must periodically make various disclosures regarding financial and other matters to ensure transparency. CEO/CFO certification of internal controls The CEO and CFO of listed companies must (a) certify that the financial statements are fair and (b) accept responsibility for internal controls. Annual Reports Annual reports of listed companies must carry status reports about compliance with corporate governance norms
Compliance of all the applicable legal provisions, rules & regulation Related party transactions Disclosure of accounting treatment
Ethical conduct of affairs Part of Wealth Management Avoidance of un- due advantage to the related parties Part of Wealth Management Governance of affairs of the company, transparency Part of Wealth Management Insurance / disaster management . Part of Wealth Management
Risk management
Proceeds from public issues, Utilization of funds for the rights issues, preferential issues specified purpose / etc. transparency Part of Wealth creation & Management
Development / new avenues / future strategy Part of Wealth creation & Management
Stakeholders interest / effective complaints redressal Part of Wealth creation & Management
Transparency
CEO/ CFO Certification financial statement authenticity No misleading or fraudulent transaction internal controls. accounting policies
Good governance
Transparency
Report on Corporate Governance Disclosure separate section on Corporate Governance in the Annual Reports Non Compliance of any mandatory requirement with reasons thereof Quarterly compliance report to the stock exchanges within 15 days from the close of quarter