The Securities and Exchange Board of India (SEBI) has notified the Securities and Exchange Board of India (Depositories and Participants) (Amendment) Regulations, 2023. These Regulations were published on 28th February, 2023 and shall come into force from 27th August, 2023.
The Amendment Regulations, inter alia, have now defined the term “non-independent director” to mean “a director elected or nominated by the shareholders who are neither depository participants nor their associates and agents”.
Furthermore, the Amendment Regulations also state that the employee of a depository shall not simultaneously be an employee of any other company where the depository has invested. Also the director, committee member or employee of a depository shall not receive any compensation or any other financial benefit from the companies where the depository has invested, other than fees and expenses related to the governing board and committee meetings.
Additionally, the Board may appoint one or more persons not exceeding three in number, as director(s) on the governing board of any depository and such director(s) shall exercise the same powers as the other directors of the governing board.
