India’s market regulator, the Securities and Exchange Board of India (SEBI), is thinking about easing some rules for listed companies. These changes include less strict rules for related party transactions and large shareholders.
In a paper released on Wednesday, SEBI also suggested giving these companies more time to disclose any legal disputes they are involved in.
For related party transactions, SEBI proposed that public companies should not need audit committee approvals for directors’ and executives’ pay or have to disclose their compensation every six months.
Additionally, SEBI recommended that once companies go public, they should get shareholder approval for any pay or profit-sharing deals made when they were private.
SEBI also suggested that listed companies should post their memorandum of association and articles of association on their website. SEBI is asking for feedback on these ideas from market participants by July 17.