Accurate director disclosure requires limiting the tenure shown in an expelled trading member's annexure to the actual period of office.

A stock exchange disclosure describing a person as a current director of an expelled trading member had to accurately limit the period of directorship reflected in the annexure. Because the appellant had resigned after the date of default but before expulsion, the entry should not have suggested continuing directorship beyond the actual tenure. The disclosure could be corrected by stating the date till which he remained a director, rather than allowing an indefinite impression of present office. The exchange was directed to amend the annexure accordingly and specify the relevant cut-off date.

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Issues: Whether the stock exchange could continue to display the appellant as a current director of an expelled trading member without limiting the period of directorship reflected in the relevant annexure.

Analysis: The appellant had resigned after the date of default but before the expulsion of the trading member. The annexure attached to the impugned communication gave the impression that he continued to be a director of the expelled entity as on date, which was not an accurate reflection of the period during which he had actually held office. The disclosure could therefore be corrected by specifying the period up to which he remained a director, rather than leaving the entry to operate indefinitely.

Conclusion: The issue was answered in favour of the appellant. The stock exchange was directed to clearly mention the date till which the appellant was a director of the expelled entity in the annexure to the impugned circular.

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