Introduction to SEBI (Prohibition of Insider Trading) Regulations
– Vinita Nair & Aisha Begum Ansari | corplaw@vinodkothari.com
– Vinita Nair & Aisha Begum Ansari | corplaw@vinodkothari.com
– Vinita Nair, Senior Partner | corplaw@vinodkothari.com
– Shaivi Bhamaria and Ajay Ramanathan | corplaw@vinodkothari.com
– Vinod Kothari
Stress testing is a part of risk management process. Stress testing envisages those plausible, however, low frequency events, which may occur and disrupt the operations. In the context of a financial intermediary – stress may be seen either in the solvency (that is, capital is not sufficient to absorb the risks or losses), or liquidity (that is, the bank is perfectly solvent, and yet, does not have enough liquidity to discharge immediate liability).
The need for stress testing comes from para 15A (para 15 for non-systemically important NBFCs) read with Annex II of the Master Directions for NBFCs[1] which provide as follows:
Read more →– Ajay Ramanathan, Executive | ajay@vinodkothari.com
– Payal Agarwal & Shreya Salampuria | corplaw@vinodkothari.com
– Team Corplaw | corplaw@vinodkothari.com
Read our write ups on the said consultation paper:
– Vinita Nair, Aanchal Kaur Nagpal & Payal Agarwal | corplaw@vinodkothari.com
Read our related resources here :
– Sharon Pinto & Ajay Ramanathan | corplaw@vinodkothari.com
– Team Corplaw | corplaw@vinodkothari.com
Appointment of Nominee director | Disqualification under CA, 2013 |
Resignation, removal | Roles, responsibilities and liability |
Board composition | Applicability and immediate actionable under present amendment |
A Nominee Director is a representative of a stakeholder/ stakeholder group (“nominator”), put by the nominator on the board of a company, to ensure that the interests of the nominator, and the general interests of the Company, are safeguarded. While, the enabling provisions for appointment of nominee director is primarily set out in Sec. 161(3) of CA, 2013 authorisation in the Articles of Association of the Company is a prerequisite. Under CA, 2013 the power to appoint director vests with shareholders. The Board has the power to appoint an additional director, alternate director and a nominee director only where specifically authorised under the AOA.
A nominee director is a director, and therefore, except for specific provisions of law, articles or the terms of the agreement under which the right of nomination comes, the position, appointment process, etc., of the nominee director are the same as those of any director. The similarities and the differences are tabulated as under:
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