Securities Exchange Board of India (SEBI) has issued Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)(Amendment) Regulations, 2020 on 10 January, 2020. The amendment has extended the date for compliance with the requirement for 500 top listed entities to appoint a Non-executive director as Chairman of the Board.
Amendment is made to Rule 17(1B) of the Regulation. The Regulation 17(1B) provides that the top 500 listed entities shall ensure that the Chairperson of the board of such listed entity shall be a non-executive director and not be related to the Managing Director or the Chief Executive Officer as per the definition of the term “relative” defined under the Companies Act, 2013.
The date for complying with this requirement was initially set as April 1, 2020. It is now extended to 1 April 2022.
Click here to read the Amendment.