The Securities and Exchange Board of India (SEBI) has at its meeting held on 29th June, 2021,  approved certain amendments to Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations) pertaining to regulatory provisions related to Independent Directors (IDs). These amendments shall be made applicable with effect from Jan 01, 2022.

 

The Board also agreed to make a reference to the Ministry of Corporate Affairs (MCA), for giving greater flexibility to companies while deciding the remuneration for all directors (including IDs), which may include profit linked commissions, sitting fees, ESOPs, etc., within the overall prescribed limit specified under Companies Act, 2013.

 

In the newsflash, we have tried to cover the significant changes bought in the definition of ID and also the pragmatic changes proposed in their appointment / resignation regime.

 

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