Insights
Consultation paper on review of regulatory provisions related to independent directors
March 10, 2021SEBI has released a Consultation Paper in which it has proposed changes to the existing provisions relating to Independent Directors (IDs) on the Boards of listed companies, with a view to strengthen the independence of IDs and enhance their effectiveness, especially to protect the interests of minority shareholders. The proposed changes pertain to the eligibility criteria for IDs, processes for their appointment/re-appointment, removal and resignation, remuneration and the role of the Nomination and Remuneration Committee (NRC). Public comments to the paper are invited by 1 April, 2021.
To refer to a summary of the proposed changes, click here.
