To comply with clause 49, paragraph 1, a company must adhere to certain principles. The term “clause 49” refers to clause 49 of the listing agreement between a company and the exchanges on which it is listed (the listing agreement is the same for all Indian exchanges, including the NSE and the BSE). This clause is a recent addition to the Listing Agreement and was not inserted until 2000 following the recommendations of the Kumarmangalam Birla Committee on Corporate Governance, established in 1999 by the Securities Exchange Board of India (SEBI). The main reason for this clause is that the company should be fair to its stakeholders. Everything in the business must be done efficiently and fairly. Because stakeholders have a social and financial interest in the business, the company is required to protect its interests. The provisions for the establishment of the Risk Management Committee apply to the 100 companies listed after market capitalization at the end of the previous year. Section 49 also applies to other listed companies that are not corporations, but entities or are subject to other laws (for example, banks. B, financial institutions, insurance, etc.). Term 49 applies to the extent that it is not contrary to its respective statutes and directives or directives of the relevant regulatory authorities. [3] In accordance with the CIRCULAR SEBI no CIR/CFD/POLICY CELL/2/2014 of 17 April 2014; Parar4 “Applicability.” Available at: www.sebi.gov.in/cms/sebi_data/attachdocs/1397734478112.pdf, accessed 31.07.2016.

In 2014, Term 49 was amended to include whistleblower policy as a binding provision. (b) of all companies that have been required to meet the requirement of the proposed Clause 49 for review, i.e. all listed companies with a freed capital of 3 crores or more or a net asset of 25 kronor or more at any time in the company`s history. Companies are required to meet the requirements of the clause on March 31, 2004 or before March 31, 2004. These amendments are a mixture of clarifications and relaxations of corporate governance requirements, in accordance with Article 49 of the listing agreements.

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