Question

    Under SEBI’s corporate governance framework, which of

    the following requirements apply to listed companies in India ?  At least one-third of the board of directors must be independent if the Chairperson is non-executive.  Related Party Transactions (RPTs) must be disclosed to shareholders and regulatory authorities.  Whistleblower policies are mandatory for all companies to ensure internal governance and fraud prevention. 
    A 1 and 2 only Correct Answer Incorrect Answer
    B 2 and 3 only Correct Answer Incorrect Answer
    C 1 and 3 only Correct Answer Incorrect Answer
    D 1, 2, and 3 Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    • Independent Directors (1): SEBI mandates that at least one-third of board members be independent for fair corporate governance. 
    • Related Party Transactions (2): Must be transparently disclosed to shareholders and regulators to avoid conflicts of interest. 
    • Whistleblower Policy (3): Listed companies are required to have a mechanism for employees to report unethical practices. 

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