Listed companies' directors can serve in maximum 10 committees: Sebi
The director can't chair more than five committees of listed entities and unlisted public limited companies put together.
Director of a publicly-traded company can serve in a maximum of 10 committees in listed and unlisted firms put together, according to Sebi, which is strengthening corporate governance norms.
Besides, the director can't chair more than five committees of listed entities and unlisted public limited companies put together.
"A director of a listed entity can be member in maximum ten committees and chairperson of more than five committees of listed entities and unlisted public limited companies put together," as per a latest set of FAQ (Frequently Asked Questions).
The Securities and Exchange Board of India (Sebi) has been tightening its regulatory framework to ensure transparency in corporate governance practices and to protect investors' interest.
The directives are part of Sebi (Listing Obligations and Disclosure Requirements) Regulations, which prescribes conditions and disclosures to be followed by a listed company on a stock exchange. The new listing regulations have become effective from December 1.
The norms have been divided into two parts. Substantive provisions have been incorporated in the main body of regulations and procedural requirements in the form of schedules to the regulations.