Definition of related to promoter clarifies nominees, directors and employees as related, affecting board independence requirements. Clause 49 is amended to explain related to any promoter: if the promoter is a listed entity, its directors (other than independent directors), employees and nominees are deemed related; if the promoter is an unlisted entity, its directors, employees and nominees are deemed related. The clarification affects the requirement that at least one half of the board be independent where the non executive chairman is a promoter or related to promoters. Applicability: at in principle approval for new listings and for existing listed entities by March 31, 2009, with stock exchanges required to update listing texts and report implementation to SEBI.
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Definition of related to promoter clarifies nominees, directors and employees as related, affecting board independence requirements.
Clause 49 is amended to explain related to any promoter: if the promoter is a listed entity, its directors (other than independent directors), employees and nominees are deemed related; if the promoter is an unlisted entity, its directors, employees and nominees are deemed related. The clarification affects the requirement that at least one half of the board be independent where the non executive chairman is a promoter or related to promoters. Applicability: at in principle approval for new listings and for existing listed entities by March 31, 2009, with stock exchanges required to update listing texts and report implementation to SEBI.
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