Clause 49 of Listing Agreement

Solution & Benefits

ProcessGene™ Clause 49 Software – Introduction

The ProcessGene™ GRC software suite provides a complete solution for Clause 49 compliance. The Clause 49 software is implemented within days, immediately creating compliance visibility and centralized control.

The Clause 49 software establishes an automated workflow that reduces the time and cost of compliance enforcement and eliminates manual labor, maintenance of multiple excel spreadsheets, etc. ProcessGene™’s Clause 49 software is designed for multi-subsidiary organizations, based on our Multi-Org technology.

ProcessGene is acknowledged worldwide as a leading provider of Business Process Management (BPM) software solutions (see Gartner’s report on ProcessGene).

Clause 49 Compliance in a Changing Business Environment

In today’s highly regulated environment, enterprises are increasingly strained by regulatory compliance concerns, while at the same time having to promote the ongoing conduct of business. Executive officers are specifically required to demonstrate capabilities for effective regulatory compliance, and to ensure corporate transparency and visibility into the business.

ProcessGene™ GRC software provides a complete solution for Clause 49 compliance. The Clause 49 software is implemented within days, and uses automation to reduce the time and cost of compliance enforcement.

Compliance Challenge

The Clause 49 of Listing Agreement regulation (also known as “Clause 49″, “Corporate Governance in India”) was introduced 2005 by the the National Stock Exchange (NSE) of India, and has been continually maintained and updated to reflect the dynamic changes in business environment. The Clause 49 of Listing Agreement regulation is aimed at improving corporate governance norms, hence assuring that a company is governed in the best interest of all stakeholders. Clause 49 applies to all listed companies in India.

More specifically, Clause 49 focuses on the following issues:

Assuring accuracy and completeness of financial disclosures, including CEO/CFO signing (SOX certification)
Extending roles and responsibility of audit committees
Assuring independency of directors
Requiring board members to follow codes of conduct

Ensuring compliance with the Clause 49 regulation is an important organizational task, which requires ongoing management of compliance data. The compliance process is continuous and needs to be repeated periodically and closely monitored. Managing officers are personally responsible to maintain the Clause 49 compliance, and this responsibility requires significant management attention and allocation of time and effort. Beyond self assessments or assessments of compensated third parties (such as accounting auditors or regulation consultants), the organization may also confront other external audits, such as NSE, that show little if any tolerance to deficiencies. The ProcessGene credo in this matter is that objective compliance data, maintained by the organization itself, has much higher value than opinions of compensated third parties. We also believe that only an ongoing, continuous process can ensure actual compliance and audit clearance.

Compliance Challenge for Multi-Subsidiary Organizations

Multi-subsidiary organizations are confronting even more complex compliance challenges, due to differences between the business processes and operational characteristics of subsidiaries. Hence, the management and communication of Clause 49 compliance in a multi-subsidiary environment becomes an extremely complex task when managed manually or by tools that are not specifically designed for Multi-Org operations.

Clause 49 Compliance with the ProcessGene™ GRC Software Suite: Solution & Benefits

ProcessGene™ GRC software provides a complete solution for Clause 49 compliance. Our Multi-Org software solution automates the Clause 49 compliance lifecycle and offers the following benefits:

Very fast implementation, the Clause 49 software is up and running within days
The Clause 49 software is based on Multi-Org technology, designed for Clause 49 compliance in multi-subsidiary organizations
The Clause 49 software features full automation of the Clause 49 compliance process using the ProcessGene™ BPM workflow engine, making it the most powerful system in the industry – yet the most intuitive and user friendly
The Clause 49 software features central cockpit with dashboards for data analysis and diagnostics- showing quantitative Clause 49 compliance fulfillment levels
The Clause 49 software features easy and fast access to objective evidence used for external audits
The Clause 49 software features direct connectivity to ERP systems (e.g. SAP / Oracle) and ability to extract and process data in real time, and run automated tests
The Clause 49 software covers not only Clause 49 compliance but also hundreds of other regulations and frameworks – all within the same framework
The most seasoned and comprehensive SaaS (Software as a Service) solution in the GRC domain (see Gartner’s report on ProcessGene)
The Clause 49 software improves the quality of Clause 49 internal audits and self-assessments

ProcessGene™ “Multi-Org” Technology

ProcessGene™ has been a pioneer and global leader in Multi-Org technology. During the past decade we have mastered a unique expertise in providing software solutions to multi-subsidiary organizations worldwide (see Gartner’s report on ProcessGene). Our Clause 49 compliance software has been specifically designed for multi-subsidiary organizations and it features the most comprehensive solution for complex, distributed compliance challenges. Read more about ProcessGene Multi-Org technology.