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Submission on SEBI’s consultation paper on review of provisions related to Independent Directors
Submission on SEBI’s consultation paper on review of provisions related to Independent Directors

April 1, 2021

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Securities and Exchange Board of India (SEBI) recently released a consultation paper to solicit public comments on review of provisions relating to Independent Directors (IDs) under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations). 

Based on inputs received from the industry, NASSCOM submitted its response to SEBI. In our submission, we have highlighted that while majority of the proposed amendments are beneficial in nature, there are a few proposals which may create unintended practical challenges and potentially disrupt established board processes. 

We have requested SEBI to amend the process of appointment and re-appointment of IDs to seek approval as a one-step process, seek approval through Special Resolution for removal of ID as against the proposed dual step approval process, increase the percentage of commission payable and/or limit for the sitting fees instead of offering Employee Stock Option Plans/profit or performance linked commission, amongst others.

Our detailed submission to SEBI is attached for your reference.

We will keep you posted on further developments in this regard.

 

 


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20210401_NASSCOM_Recommendation_SEBI_IndependentDirector.pdf

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