Listing Update: Clarification regarding SEBI Listing Regulations w.r.t. Appointment of Director

∆ National Stock Exchange of India (NSE) vide it's circular dated December 22, 2021 clarified with respect to applicability of amended provisions regarding appointment of director, as follows:

✓  Amendment: As per the amendment effective from January 01, 2022 - the listed entity shall ensure that approval of shareholders for appointment of a person on the Board of Directors is taken at the next general meeting or within a time period of three months from the date of appointment, whichever is earlier [Regulation 17(1C)]. 

✓ Query: Whether the above amendment in  Listing Regulations shall be applicable to directors appointed before the effective date of the amendment i.e. January 01, 2022?

✓ Reply: The stock exchange clarified that, the existing provisions shall be applicable for the directors appointed on or before December 31, 2021. The amended provisions of newly inserted Regulation 17 (1C) shall be applicable for the appointment on or after January 01, 2022. However, the type of resolution (Ordinary or Special) to be passed shall be as per the prevailing provisions of Listing Regulations.