The National Stock Exchange has forwarded to SEBI a list of 18 companies that had not complied with the mandatory e-voting norm prescribed under the listing agreement.

Ball in SEBI’s court

Some top notch state-owned banks including State Bank of India and some private banks formed part of this list, sources close to the developments said.

The list also comprised several private sector companies, they said, adding that the ball is now in SEBI’s court to take further action.

SEBI had in mid-April last year amended the listing agreement (clause 35B) to stipulate that e-voting facility be provided for all shareholder resolutions in general meetings.

The market regulator SEBI had asked both NSE and the BSE to monitor compliance of this requirement.

Not mandatory: SBI

The task of monitoring was split between the two bourses by SEBI and NSE has now for its part forwarded a list of erring companies to SEBI. Many public sector banks including SBI are contending that the Acts governing their working do not provide for mandatory e-voting of resolutions passed at shareholder meetings.

Interestingly, there is no provision in the listing agreement for any penal action for non-compliance to clause 35B, say experts.

SN Ananthasubramanian, former President of the Company Secretaries Institute, told BusinessLine that the regulator should show teeth by taking credible effective action to restore the sanctity behind listing agreement.

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