'Listed cos have 33 per cent IDs and not 50 per cent'

By Staff
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Google Oneindia News

New Delhi, June 25: The government today said the number of Independent Directors (IDs) in Board of listed companies will not be allowed to exceed 33 per cent of their total strength against 50 per cent as is being mandated by SEBI.

Special provisions, to this effect, is being incorporated in the new Company Law Bill to let corporate board function in absolute autonomy, Minister for Corporate Affairs Prem Chand Gupta said at a conference on 'Corporate Governance and Financial Reporting Norms' here.

The Minister, categorically stated that SEBI has sectorial role to play while Corporate Affairs Ministry has a wide spectrum and ultimately new Company Bill which after its enactment will ensure that board of listed companies would have only 33 per cent IDs and not 50 per cent as is being sought by SEBI.

On adoption of advanced accounting standards, the Minister said that the government have already notified 29 such standards and many others would also be notified after suitable recommendation from committee constituted for the purpose and Indian Institute of Chartered Accountants submit their report to the government.

This convergence of accounting standards is initiated by the government to bring India on par with the international accounting standards so that industry's account book speak one language without any scope for mis-interpretation, he added.

UNI

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