Implications of SEBI limits on directorships
Moneylife Digital Team 25 February 2014

‘A person can serve as an independent director on the boards of a maximum 7 listed companies and a maximum of 3 listed companies in case the person is serving as a whole time director in a listed company’ says SEBI. What does this mean?

SEBI has recently announced new Corporate Governance norms with reference to independent directors. Besides mandating a woman director on each board, SEBI has now stipulated that a person can serve as an independent director on the boards of a maximum 7 listed companies and a maximum of 3 listed companies in case the person is serving as a whole time director in a listed company.

  

According to Pranav Haldea, managing director, PRIME Database, which runs www.indianboards.com, a joint initiative of PRIME Database and NSE, “this would mean that 97 persons would have to resign from 283 independent directorship positions in NSE-listed companies by 1st October 2014…This is a welcome move as independent directors would now be able to spend more time on a company.”

 

The person with the maximum number of directorships in listed companies is Mr Pradip Kumar Khaitan with 14 directorships.

 

 Maximum Number of Directorships in companies listed on NSE & BSE

 

Director Name

No.of
Directorships

MR.PRADIP KUMAR KHAITAN

14

MR.ANIL HARISH

13

MR.DILIP JAYANTILAL THAKKAR

13

MR.RAJENDRA AMBALAL SHAH

13

MR.SANJAY KHATAU ASHER

13

MR.BANSIDHAR SUNDERLAL MEHTA

12

MR.NASSER MUKHTAR MUNJEE

11

MR.PRADIP PANALAL SHAH

11

MR.SRINIVASAN NATESAN

11

MR.AMBALAL CHHITABHAI PATEL

10

MR.BALAJI RAO JAGANNATH RAO DOVETON

10

MR.BRIJ BEHARI TANDON

10

MR.HAIGREVE PRADIP KUMAR KHAITAN

10

MR.JAYANT NARAYAN GODBOLE

10

MR.RADHA KRISHNA PANDEY

10

 

MR.SURESH NARSAPPA TALWAR

10

Source: indianboards.com

 

According to Mr Haldea “what is welcome is that SEBI has at least prescribed that if a person has already served as an Independent Director for 5 years or more in a listed company (as on 1 October 2014), he shall be eligible for appointment for only one more term of 5 years.”

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