SEBI tightens norms for MD at listed firms

Putting in place stringent norms, SEBI has said that a person rejected by shareholders at a general meeting can be appointed or re-appointed as a managing director or whole time director or manager, only after providing detailed justifications and ensuring compliance with various conditions.

“The appointment or a reappointment of a person, including as a managing director or a whole time director (WTD) or a manager, who was earlier rejected by the shareholders at a general meeting, shall be done only with the prior approval of the shareholders,” SEBI said in a notification on Monday.