Section 18: Audit Committee

Q: What does Section 18 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations) deal with?

Section 18 LODR Regulations pertains to "Audit Committee". It is part of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a legislation enacted by the Parliament of India. Section 18 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations) governs audit Committee. As verified on 19 May 2026.

Q: Is Section 18 LODR Regulations still in force?

Yes, Section 18 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is currently in force across the Republic of India.

Q: What is धारा 18 LODR Regulations?

धारा 18 LODR Regulations is the Devanagari Hindi reference for Section 18 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Section 18 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations) governs audit Committee. As verified on 19 May 2026.

Q: What is Dhara 18 LODR Regulations?

Dhara 18 LODR Regulations is the Roman Hindi reference for Section 18 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. "Dhara" means "Section" in Hindi. Section 18 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations) governs audit Committee. As verified on 19 May 2026.

Q: How to cite Section 18 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015?

Cite as: "Section 18, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations)" in legal briefs. For academic writing, use the BlueBook format: SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, § 18 (India).

Law on Tips Editorial Board

(1)

Every listed entity shall constitute a qualified and independent audit committee in accordance with the terms of reference, subject to the following:

(a) The audit committee shall have minimum three directors as members.

(b) Two-thirds of the members of audit committee shall be independent directors [and in case of a listed entity having outstanding SR equity shares, the audit committee shall only comprise of independent directors] [Inserted by Notification No. SEBI/LAD-NRO/GN/2019/28, dated 29.7.2019 (w.e.f. 2.9.2015).].

(c) All members of audit committee shall be financially literate and at least one member shall have accounting or related financial management expertise.

(d) The chairperson of the audit committee shall be an independent director and he shall be present at Annual general meeting to answer shareholder queries.

(e) The Company Secretary shall act as the secretary to the audit committee.

(f) The audit committee at its discretion shall invite the finance director or head of the finance function, head of internal audit and a representative of the statutory auditor and any other such executives to be present at the meetings of the committee:

(2)

The listed entity shall conduct the meetings of the audit committee in the following manner:

(a) The audit committee shall meet at least four times in a year and not more than one hundred and twenty days shall elapse between two meetings.

(b) The quorum for audit committee meeting shall either be two members or one third of the members of the audit committee, whichever is greater, with at least two independent directors.

(c) The audit committee shall have powers to investigate any activity within its terms of reference, seek information from any employee, obtain outside legal or other professional advice and secure attendance of outsiders with relevant expertise, if it considers necessary.

(3)

The role of the audit committee and the information to be reviewed by the audit committee shall be as specified in Part C of Schedule II.