SEBI to soon come out with new corporate governance norms

The Securities and Exchange Board of India will soon come out with a detailed framework on corporate governance structure that could also limit the number of companies on whose boards a person is allowed to serve to five.

The new corporate governance model also addresses the areas of CEO salary, succession planning and whistle-blower policy in listed companies.

SEBI will notify detailed guidelines of new corporate governance model once the board of the market regulator takes up the proposal and approves it, chairman UK Sinha said on the sidelines of an ANMI function.

 ''...hopefully very soon in our next meeting of the SEBI board, we will be taking up the proposal (about corporate governance structure) for the approval. Once, we will get approval, details of the proposals will be announced,'' Sinha said.

SEBI may also limit the number of listed companies on whose boards a whole-time director may be allowed to act as independent director to two.

On the search and seizure powers of SEBI, Sinha said the regulator has kept check and balances on this.

The proposed guidelines are in line with the new Companies Act and are aimed at strengthening corporate governance, thereby protecting minority investors.