However, FIs are not convinced. Now most of the family run companies are packed withfamily members with little knowledge and understanding of the market and industry. We need corporate governance but don't target FIs alone,'' said an institutional source. One analyst also questioned the power of the SEBI to push such a major proposal which comes under the Companies Act. This may be one reason for the SEBI and the panel to use the listing norms of the stock exchange to enforce the proposal.
All companies seeking listing for the first time have to implement the recommendations immediately.
Companies with a paid up capital of Rs 10 crore and above or with a networth of Rs 25 crore and above have to implement the recommendations by April 2000. For companies with paid up capital of Rs 5 crore and above the time limit is April 2001.