The board of India's markets regulator on Wednesday approved a set of far-reaching changes aimed at giving more power to shareholders and creditors, including doing away with the current practice of having permanent board members for publicly listed companies.
The Securities and Exchange Board of India (SEBI) said in a press release board seats would come up for voting every five years, making shareholder approval mandatory for any director, starting April 2024.
The regulator also cleared a proposal which will give bondholders a right to object to related party transactions proposed by companies which have listed high-value debt securities.
($1 = 82.1500 Indian rupees)
(Reporting by Jayshree P Upadhyay; Editing by Nivedita Bhattacharjee)