Old boys club of independent directors will now have to face retirement in five years. Market regulator Sebi has announced a new set of corporate governance norms after a board meeting in Delhi today. An independent director can now be on the board of a maximum of seven companies and only three if the person is acting as a whole time director. Sebi has announced that all companies must have a mandatory whistleblower mechanism.
Most of the changes that were announced at Sebi's board meet were in-line with the new Companies Act. However there were three big changes where the Sebi has gone beyond the mandate under Companies Act.
Sandeep Parekh, Founder, Finsec Law Advisors gave his reaction to the new Sebi guidelines.
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