Markets regulator SEBI on Tuesday proposed extending the requirement of constituting a risk management committee to top 1,000 listed entities from 500 at present.
The risk management committee should meet at least twice in a year from the current practice of minimum one meeting every year, SEBI said in a consultation paper.
Considering the multitude of risks faced by listed entities, the regulator said risk management has emerged as a very important function of the board.
Further, the Covid-19 pandemic has reinforced the need for a robust risk management framework, it added.
While Listing Obligations and Disclosure Requirements norms specify the role of various board committees of listed entities, defining the role and responsibilities of the risk management committee (except for cyber-security risk) is left to individual boards of listed entities.
In view of the increasing importance of…