SEBI Orders regarding appointment of Directors by listed companies.

   

SEBI has issued a circular w.r.t Enforcement of SEBI Orders regarding appointment of Directors by listed companies. 



 




SEBI has issued instructions to all the Exchanges on June 14, 2018, wherein SEBI has referred to enforcement of its Orders debarring entities/individuals from accessing the capital markets and / or restraining from holding position of directors in any listed company. 



Vide this communication, SEBI has issued certain directions regarding enforcement and monitoring of the appointment of restrained persons mentioned in the SEBI orders. Accordingly, all Listed companies and its Nomination Committee while considering a person for appointment as director, shall verify that the said person is not debarred from holding the office of director pursuant to any SEBI order and shall affirm the same to the Stock Exchange while making Corporate Announcements. 



Further, in case an existing director is restrained from acting as a director, he shall voluntarily resign with immediate effect, failing which the listed entity shall initiate the process of removal of such director in terms of relevant sections of the Companies Act, 2013, and inform the Exchange about the same.  All listed companies are requested to take note of above and comply accordingly.