Topics In Demand
Notification
New

No notification found.

Blog
NASSCOM’s Submission on SEBI’s Consultation Paper on applicability and role of the Risk Management Committee

December 14, 2020

275

0

Securities and Exchange Board of India (SEBI) recently released a discussion paper to solicit public comments on proposed amendments to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations) regarding the applicability and role of the risk management committee.

Considering the multitude of risks faced by listed entities, risk management has emerged as a very important function of the board. The Covid-19 pandemic has also reinforced the need for a robust risk management framework. In light of the increasing importance of risk management function, there was a need to:

  1. Extend the requirement of formation of a Risk Management Committee to a larger number of listed entities
  2. Define the role and responsibilities of the Risk Management Committee in the LODR Regulations and
  3. Increase the frequency and define a quorum for the meetings of the Risk Management Committee.

Based on inputs from the industry, NASSCOM submitted its response to SEBI. In our submission, we have highlighted that while all the proposed amendments appear to be rationale and beneficial, the role of risk management committee to formulate a detailed  policy on systems for internal control could  lead to duplication.

Audit committee, which is also a committee of the Board, already has the mandate to look at internal controls and related systems. Therefore, it will be appropriate to leave this role to the Audit Committee in order to avoid duplication and confusion.

We will keep you posted on further developments in this regard.


That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.


Download Attachment

31544-20201209-nasscom-sebi-riskmanagementcommittee.pdf

Tejasvi

© Copyright nasscom. All Rights Reserved.