New Delhi, Feb 9 (NationPress) The Securities and Exchange Board of India (SEBI) has introduced new regulations aimed at enhancing corporate governance for listed firms.

These initiatives concentrate on modifying the format of the Annual Secretarial Compliance Report (ASCR), establishing eligibility standards for auditor appointments, and setting financial thresholds for the approval of Related Party Transactions (RPTs).

The objective of SEBI is to guarantee that listed entities adhere to rigorous compliance and uphold transparency in their operations.

In a consultation document, the regulatory body has proposed enhancements to ensure the ASCR is more comprehensive.

The revamped format will offer clearer confirmation regarding a company's adherence to securities regulations.

Moreover, SEBI has suggested that ASCR become a mandatory component of the annual report, thereby boosting accountability.

Regarding auditor appointments, it has recommended integrating provisions from the Companies (Audit and Auditors) Rules, 2014, into the Listing Obligations and Disclosure Requirements (LODR) Regulations.

This will guarantee that statutory auditors possess the requisite qualifications and expertise suited to the complexity and size of a company.

SEBI has also proposed that audit committees should thoroughly assess the qualifications of signing partners prior to their appointment.

To enhance transparency in auditor selections, it has advised disclosing key information about the selection or reappointment of statutory and secretarial auditors to the audit committee, board of directors, and shareholders. A standardized format for such disclosures has also been suggested.

Furthermore, SEBI has proposed financial limits for RPTs undertaken by subsidiaries of listed firms.

It has recommended two approval thresholds for these transactions.

For subsidiaries with a financial history, the threshold will be the lower of either 10 percent of turnover or a monetary limit—Rs 1,000 crore for main-board companies and Rs 50 crore for SMEs.

For subsidiaries lacking a financial record, the threshold will be based on 10 percent of the subsidiary's net worth or the same monetary limits.

If the subsidiary has a negative net worth, the share capital plus securities premium will be considered instead.

To enhance compliance, SEBI has also suggested clarifying the definition of RPTs.

The amendments will clarify whether exemptions for transactions between a parent company and its wholly-owned subsidiary apply to both listed and unlisted firms.

SEBI has invited public feedback on these proposals until February 28.