SEBI has issued a circular dated May 10, 2018 (‘Circular’) that provides for implementation of certain recommendations of the committee on corporate governance under the chairmanship of Uday Kotak. The following provisions will now apply to entities whose equity shares are listed on a recognized stock exchange:

i. Disclosures on Board Evaluation: A listed entity may consider including observations about Board evaluation of the current year, the previous year’s observations and any actions taken pursuant to the same and proposed actions based on the current year’s observations as part of its disclosure on Board’s evaluation.

ii. Group Governance Units: If a listed entity has several unlisted subsidiaries, it may monitor their governance through a dedicated group governance unit or governance committee comprised of members of its Board and a strong and effective group governance policy.

iii. Medium term and long term strategy: The listed entity may consider disclosing its medium-term and long-term strategy under the management discussion and analysis section of the annual report, within limits of its competitive position and for a time frame as set by the board of directors. Additionally, the listed entity may articulate a clear set of long-term metrics specific to the company’s long term strategy to allow for appropriate measurement of progress.