The Securities and Exchange Board of India (“SEBI”) has in a notification dated January 10, 2019, issued the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2020. The amendment has extended the date from which Regulation 17(IB) shall become effective.
Regulation 17(IB) earlier stated that from April 1, 2020 onwards, the top 500 listed entities must ensure that the Chairperson of the board of such listed entity is:
- a non-executive director;
- not related to the Managing Director or the Chief Executive Officer as per the definition of the term “relative” defined under the Companies Act, 2013.
The date in the provision has now been revised to April 1, 2022, Accordingly, the requirements with regard to the Chairperson of a top 500 listed entity will gain force from April 1, 2022.