Corporate Updates 19 April 2014

SEBI has revised Clause 49 & 35B of the listing agreement to align with the provisions of the Companies Act, 2013, adopt best practices on corporate governance and to make the corporate governance framework more effective. The revised Clause 49 that would be applicable to all listed companies with effect from October 01, 2014. However, the provisions of Clause 49(VI)(C) as given in Part-B shall be applicable to top 100 listed companies by market capitalisation as at the end of the immediate previous financial year. Further, the revised Clause 35B would be applicable to all listed companies and the modalities would be governed by the provisions of Companies (Management and Administration) Rules, 2014.


RBI through its Notification has advised all Banks for Differential Rate of Interest for Micro and Small Enterprises (MSEs) while pricing their loans than the other borrowers. However, banks should note that such differential rate of interest is not below the Base Rate of the bank. Banks should take into account the incentives available to them in the form of the credit guarantee cover of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) and the zero risk weight for capital adequacy purpose for the portion of the loan guaranteed by the CGTMSE and provide differential interest rate for such MSE borrowers, than the other borrowers.

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