Bombay Stock Exchange Circular on SEBI Order as
regards to appointment of directors in listed companies.
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,
the directions issued for the Listed Companies are as
follows:
PERSON TO BE APPOINTED AS DIRECTOR SHALL NOT BE DEBARRED TO ACT AS
DIRECTIOR BY SEBI ORDER
a.
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.
BSE LISTED COMPANIES SHOULD AFFIRM THAT THE PROPOSED DIRECTOR IS NOT
DEBARRED
b.
The Listed Companies shall, while informing the Exchange through
corporate announcements for appointment of Director, specifically affirm that
the Director being appointed is not debarred from holding the office of
director by virtue of any SEBI order or any other such authority. Non-inclusion
of such fact will be regarded as inadequate submission and the same would be
subject to action as deemed fit under Regulation 30 of the LODR.
BSE LISTED COMPANIES SHOULD REMOVE SUCH DEBARRED DIRECTOR BY
SEBI FROM DIRECTORSHIP
c.
In case an existing director is restrained from acting as a
director by virtue of any SEBI order or any other such authority, the director
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.
Source- BSE Circular
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