Independent director eligibility clarified: associate relationships, cooling-off requirement and mandatory SEBI notification on board composition. SEBI clarifies that relatives of sponsors or sponsor directors, nominees of stakeholder companies, and other persons deemed 'associates' are ineligible to serve as independent directors while the association exists. A person who ceases to be an associate must observe a three-year cooling-off period before appointment as an independent director; during that interval they may only serve as associate directors. AMCs and trustee companies must classify directors accordingly, notify SEBI if independent-director composition falls below required levels, and use the revised bio-data format when submitting new director particulars.
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Independent director eligibility clarified: associate relationships, cooling-off requirement and mandatory SEBI notification on board composition.
SEBI clarifies that relatives of sponsors or sponsor directors, nominees of stakeholder companies, and other persons deemed "associates" are ineligible to serve as independent directors while the association exists. A person who ceases to be an associate must observe a three-year cooling-off period before appointment as an independent director; during that interval they may only serve as associate directors. AMCs and trustee companies must classify directors accordingly, notify SEBI if independent-director composition falls below required levels, and use the revised bio-data format when submitting new director particulars.
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