The Sebi board will not take up the Uday Kotak report on corporate governance for discussion in its meeting later this month, chairman Ajay Tyagi said. The Kotak committee, which was constituted by Sebi, had suggested a major overhaul of corporate governance norms for listed companies in its report submitted on October 5. The Securities and Exchange Board (Sebi) has sought public comments till November 4 on the 177 pages report. “We are not going to take up the Kotak report in the next board meeting,” Tyagi told reporters on the sidelines of an investment banking summit here. Earlier, addressing the summit, he had noted that Sebi had received a large number of comments on the report. “We are examining them and will see about how to go about implementing them,” the Sebi chief said.
“It has to be a mix of principle-based and rule-based regulations. A fine balance has to be maintained,” he added. Among others, the Kotak report called for limiting the chairmanship to only non-executive directors and appointing at least one woman independent director. While the proposal for only non-executive director is allowed to be made chairman would eventually lead to a split in the posts of chairman and managing director, the committee also suggested increasing the minimum board strength to six and the number of board meetings to five in a year. Meanwhile, Tyagi also told reporters that Sebi is looking to resolve the NSE co-location matter “as quickly as possible. We are examining various issues and an inquiry is going on.