SEBI order reg appointment of Directors by listed companies

Bombay Stock Exchange (BSE) has issued a circular dated 20th June, 2018 wherein it has referred to the SEBI order dated 14th June, 2018 debarring entities/ individuals from accessing the capital markets and/ or restraining from holding position of a director in listed companies.

1.      SEBI has issued certain directions for the Listed Companies which are as follows:

·         Listed companies and its Nomination Committee while considering a person for appointment as director shall verify that the said person is not debarred from holding the office of director pursuant to any SEBI order.  

·         The Listed Companies shall, while informing the Exchange through corporate announcements for appointment of Director, specifically affirm that the Director being appointed is not debarred from holding the office of director by virtue of any SEBI order or any other such authority.

Non-inclusion of such fact will be regarded as inadequate submission and the same would be subject to action as deemed fit under Regulation 30 of the LODR.  

·         In case an existing director is restrained from acting as a director by virtue of any SEBI order or any other such authority, the director shall voluntarily resign with immediate effect.

Failing which the listed entity shall initiate the process of removal of such director in terms of relevant sections of the Companies Act, 2013, and inform the Exchange about the same.  

https://www.bseindia.com/corporates/Displaydata.aspx?Id=d30893b5-8e5e-4842-a37d-da3e595ff58c&Page=cir

with inputs from my team member Amita Jadav.