SEBI LODR amendments: Minority say in independent directors, added regulations for debt issuers
Pammy Jaiswal | Partner | Vinod Kothari and Company (pammy@vinodkothari.com)
Background
Following the various recommendations provided by the Primary market Advisory Committee (PMAC), SEBI in its board meeting held on 30th September, 2022 discussed several proposals including the agenda to review the process for independent directors’ (IDs) appointment, re-appointment or removal, introducing the need to appoint a monitoring agency for overseeing the utilisation of the issues proceeds from the preferential issue and the qualified institutional placements (‘QIP’), requirement of obtaining NoC from SEBI for schemes of arrangement involving such companies which have listed their Non-Convertible Securities (‘NCS’) and several other changes dealing with disclosures and financial results for NCS listed entities. Our snippet covering the aforesaid board decisions may be viewed here.
These proposals have been notified, as the SEBI Listing Obligations and Disclosure Requirements) (Sixth Amendment) Regulations, 2022 (LODR 6th Amendment Regulations) have come into effect vide Notification dated 14th November, 2022 (‘Effective Date’). Our snippet covering the amendments may be viewed here.
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