Listed company query

hi,

Answer for your queries.

As per Listing Agreement, there is no specific requirement for Risk Management Committee in Listed Companies.

For your ready reference, i am re-producing relevant Clause (Clause 49(IV)(C)) of the Listing Agreement.

Listing Agreement is silent on  Formation of Risk Management Committee, Its Composition, No. of meetings, Quorum etc.

As per Listing Agreement, at Board Meeting company should lay down the procedure for Risk Management & periodically review the same.

Hope you query is resolved now.

Dear Mohan,

Kindly appreciate clause 49(IV)(C) of listing agreement is talking about Risk Management without mentioning the requirement to constitute Risk management Committee.

On the basis of above interpretation there is only one answer to all your queries:

No need to form separate committee for risk management. Audit Committee’s terms of reference can very well takes care of Risk management policies also.

Preparation of procedure for risk assessment and minimization and adoption of the same in Audit Committee meeting would be sufficient compliance. Also apprise the board members regarding risk assessment and minimization procedures periodically in BM.

Best Regards

Thank you Mitesh for your immediate reply.

Thanks Ankur for your detailed reply.

I think we are all in the same page.

Both your replies really helped me a lot. We shall keep in touch.