New SEBI norms a step ahead of Companies Act

The corporate governance norms announced by the Securities and Exchange Board of India SEBI) go beyond those mentioned in the Companies Act. SEBI has pushed for better corporate governance of listed companies through measures such as the need for a succession policy, prior approval of the audit committee for all related- party transactions and e-voting facility for all shareholder resolutions by the top 500 companies (by market capitalisation). All these measures have either not been specified in the Companies Act or haven’t been made mandatory.