SEBI has issued a circular dated 23rd October 2008 and amended 49 of the Listing Agreement to provide a clarification regarding independent directors. The clarification is to the original circular which, inter alia, provided for change in the proportion of independent directors depending on whether or not the Chairman is a Promoter or related to the Promoters, etc.
This amendment provides an explanation to define the words “related to any Promoter”. Essentially, it seeks to list the persons who are deemed to be so related.
This Explanation, while clarifying some issues, creates, at first impression, some fresh doubts and questions, which I am listing here for now and will provide some inputs in a day or two.
– The circular says that “amendments”, for already listed companies, have to be given effect to by 31st March 2009. Does this mean that this extension is given for all amendments in the original circular?
– Does it mean that “relatives” are not deemed to be related since the definition seems to be exhaustive?
and so on.