Statement (I): For the improvement in the corporate governance, the Department of Company Affairs (DCA) proposed a code of behaviour for the public sector companies in the year 1998.

Statement (II): The Clause 49 of SEBI was amended on August 2001, which had made it mandatory for every public company listed on Indian stock exchanges to sign it.

Code:

The correct answer is Both the Statements (I) and (II) are incorrect.

Key Points

 Statement (I): For the improvement in the corporate governance, the Department of Company Affairs (DCA) proposed a code of behavior for the public sector companies in the year 1998.​

• As of March 31, 2003, these corporate governance norms were being gradually implemented for all listed businesses having paid-up capital of at least Rs. 3 crore or net worth of at least Rs. 25 crore at any point during the existence of company.
• The CII (Confederation of Indian Industry Code) launched the first such initiative for the evolution of current governance practises and proposals for improvement and change about the same.

• Rahul Bajaj was the committee's chairman when it was established in 1996 and they had delivered the code back in 1998.

Statement (II): The Clause 49 of SEBI was amended on August 2001, which had made it mandatory for every public company listed on Indian stock exchanges to sign it.

• Corporate governance best practises were outlined by SEBI in a circular dated February 21, 2000, and a new item 49 was introduced to the Stock Exchanges' Listing Agreement.
• The SEBI established two committees to address corporate governance-related issues.
• The first committee, led by Kumar Manglam Birla, turned in its report in early 2000; the second, led by Narayan Murthy, turned in its report three years later. Via the creation of clause 49, the recommendations of these two committees serve as crucial tools for bringing about meaningful changes in corporate governance in India.

Hence, the correct answer is Both the Statements (I) and (II) are incorrect.