Applicability, constitution and role of the Risk Management Committee approved by SEBI Board:

SEBI’s Board meeting has approved the applicability, constitution and role of the Risk Management Committee (RMC) of listed entities. After the amendment requirement to constitute the RMC has been extended to the top 1000 listed entities by market capitalization from the existing top 500 listed entities. Further Risk Management Committee shall have a minimum three members with majority of them being members of the board of directors, including at least one independent director and the quorum for a meeting of the RMC shall be either two members or one third of the members of the committee, whichever is higher, including at least one member of the board of directors in attendance. The role of the RMC has been specified which, inter-alia, includes formulation of a detailed risk management policy and monitoring its implementation; periodic review of such policy; review of the appointment, removal and terms of remuneration of the Chief Risk Officer (if any), etc.