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4XRUXP IRU The quorum for every meeting of the board of +LJKHU RI  RU  
%RDUG directors of the top 1000 listed entities with effect 'LUHFWRUV ZKLFK VKDOO 
0HHWLQJ from April 1, 2019 and of the top 2000 listed LQFOXGHRQH,' 
entities with effect from April 1, 2020 shall be one- the Act prescribes 1/3 
third of its total strength or three directors, or 2 whichever is 
whichever is higher, including at least one higher). 
independent director ; 3UHVHQFH RI RQH ,' 
Explanation I – For removal of doubts, it is PDQGDWRU\ QRZ WR IRUP 
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quorum.  
Explanation II - The top 1000 and 2000 entities  
shall be determined on the basis of market 7RSOLVWHGHQWLWLHV $SULO
capitalisation, as at the end of the immediate 
previous financial year. 
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independent director:”
No person shall be appointed or continue as an 7R FKHFN ZKHWKHU DQ\ 2FWREHU 
alternate director for an independent director of a $OWHUQDWH 'LUHFWRU LV LQ 
listed entity with effect from October 1, 2018 SODFHRI,'
Every independent director shall, at the first meeting (YHQ DQWLFLSDWLRQ RI $SULO
of the board in which he participates as a director and FKDQJHLQFLUFXPVWDQFHV 
thereafter at the first meeting of the board in every WKDW PD\ DIIHFW WKH 
financial year or whenever there is any change in the VWDWXVDV,'LVFRYHUHG 
circumstances which may affect his status as an  
independent director, submit a declaration that he  
meets the criteria of independence as provided in  
clause (b) of sub-regulation (1) of 12 regulation 16  
and that he is not aware of any circumstance or  
situation, which exist or may be reasonably  
anticipated, that could impair or impact his ability to
 
discharge his duties with an objective independent
 
judgment and without any external influence.
 
The board of directors of the listed entity shall take
 
on record the declaration and confirmation
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submitted by the independent director under sub-
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regulation (8) after undertaking due assessment of
 
the veracity of the same.
With effect from October 1, 2018, the top 500 listed  
entities by market capitalization calculated as on  
March 31 of the preceding financial year, shall 7R LPSOHPHQW '  2 2FWREHU 
undertake Directors and Officers insurance (‘D and O ,QVXUDQFH3ROLF\ 
insurance’) for all their independent directors of such
quantum and for such risks as may be determined by its
board of directors.

452 Securities Laws & Compliances

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The board of directors of the top 500 listed entities 7RS  OLVWHG HQWLWLHV $SULO
(with effect from April 1, 2019) and the top 1000 WR DSSRLQW ,QGHSHQGHQW
listed entities (with effect from April 1, 2020) shall :RPHQ'LUHFWRU
have at least one independent woman director. 
Explanation: The top 500 and 1000 entities shall be
determined on the basis of market capitalisation as
at the end of the immediate previous financial year.
1RQH[HFXWLYH With effect from April 1, 2020, the top 500 listed ,QLWLDOO\ WRS  OLVWHG $SULO
&KDLUSHUVRQ entities shall ensure that the Chairperson of the FRPSDQLHV DUH FRYHUHG
board of such listed entity shall - 6XFFHVVLRQ SODQQLQJ WR
(a) be a non-executive director; EHGHVLJQHGDFFRUGLQJO\
(b) not be related to the Managing Director
or the Chief Executive Officer as per the
definition of the term “relative” defined
under the Companies Act, 2013:
Provided that this sub-regulation shall not be
applicable to the listed entities which do not have
any identifiable promoters as per the shareholding
pattern filed with stock exchanges.
Explanation - The top 500 entities shall be
determined on the basis of market capitalisation, as
at the end of the immediate previous financial year.
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PRUH director who has attained the age of seventy five IRU DSSRLQWPHQW RI
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effect, in which case the explanatory statement KDYH DWWDLQHG DJH RI 
annexed to the notice for such motion shall indicate \HDUVRUPRUH
the justification for appointing such a person. already exist under the
 Companies Act, 2013)
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'LUHFWRU LQ D entities (with effect from April 1, 2019) and the WR KDYH PLQLPXP  
FRPSDQ\ top 2000 listed entities (with effect from April 1, 'LUHFWRUV 
2020) shall comprise of not less than six  
directors.  
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shall be determined on the basis of market WR KDYH PLQLPXP 
capitalisation as at the end of the immediate 'LUHFWRUV
previous financial year. 
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5HPXQHUDWLR The approval of shareholders by special resolution ,Q FDVH RI 1RQ $SULO
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remuneration payable to a single non-executive WKH DSSURYDO IURP WKH
director exceeds fifty per cent of the total annual VKDUHKROGHU PD\ EH
remuneration payable to all non-executive directors, UHTXLUHG LQ PRVW RI WKH
giving details of the remuneration thereof. FDVHV

The fees or compensation payable to executive 1HZWKUHVKROGLQFDVHRI
directors who are promoters or members of the OLVWHG HQWLWLHV 7KH &RV
promoter group, shall be subject to the approval of $FW SUHVFULEHV WKUHVKROG
the shareholders by special resolution in general RI  +RZHYHU WKH
meeting, if- OLVWHG FRV WR REWDLQ
(i) the annual remuneration payable to such DSSURYDO IURP
executive director exceeds rupees 5 crore or 2.5 per 6KDUHKROGHUV LI
cent of the net profits of the listed entity, whichever UHPXQHUDWLRQ SDLG WR
is higher; or H[HFXWLYH 'LUHFWRUV
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aggregate annual remuneration to such directors  RU PRUH RI QHW
exceeds 5 per cent of the net profits of the listed SURILW RU LQ FDVH RI WZR
entity: RU PRUH VXFK GLUHFWRUV

Provided that the approval of the shareholders

under this provision shall be valid only till the expiry
of the term of such director.
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profits shall be calculated as per section 198 of the
Companies Act, 2013.
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specified in these regulations and their
independence from the management:
Provided that in the above evaluation, the directors
who are subject to evaluation shall not participate.
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454 Securities Laws & Compliances

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whatever form, payable to senior management 6HQLRU 0DQDJHPHQW WR
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$XGLW from/investment by the holding company in the H[WHQGHGWRVXEVLGLDU\
&RPPLWWHH subsidiary exceeding rupees 100 crore or 10% of the
asset size of the subsidiary, whichever is lower
including existing loans / advances / investments
existing as on the date of coming into force of this
provision.
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5HODWLRQVKLS  &RPPLWWHH  WR specifically look into 
the various aspects of interest  RI  VKDUHKROGHUV 
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At least three directors, with at least one being an 2QH ,QGHSHQGHQW
independent director, shall be members of the 'LUHFWRUWREHDSSRLQWHG
Committee. 
The Chairperson of the Stakeholders Relationship &KDLUSHUVRQ WR EH
Committee shall be present at the annual general SUHVHQWDWWKH$*0
meetings to answer queries of the security holders 
The stakeholders relationship committee shall meet
at least once in a year.
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following: HODERUDWHG ZLWK
(1) Resolving the grievances of the security LQLWLDWLRQ RI SURDFWLYH
holders of the listed entity including complaints related PHDVXUHVWREHWDNHQE\
to transfer/transmission of shares, non-receipt of 65&IRU6WDNHKROGHUV
annual report, non-receipt of declared dividends, issue
of new/duplicate certificates, general meetings etc.
(2) Review of measures taken for effective exercise of
voting rights by shareholders.
(3) Review of adherence to the service standards
adopted by the listed entity in respect of various
services being rendered by the Registrar & Share
Transfer Agent.
(4) Review of the various measures and initiatives
taken by the listed entity for reducing the quantum of
unclaimed dividends and ensuring timely receipt of
dividend warrants/annual reports/statutory notices by
the shareholders of the company.

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also set forth clearly the recommendation of the Cos. Act)
board to the shareholders on each of the specific
items.
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VKDUHKROGHUV determined as on March 31st of every financial year, WR KDYH $*0 E\ WKH 
DQGYRWLQJ shall hold their annual general meetings within a PRQWKRI$XJXVW 
 period of five months from the date of closing of the  
financial year.  
 

The top 100 listed entities shall provide one-way live /LYH:HEFDVW $SULO
webcast of the proceedings of the annual general
meetings.
Explanation: The top 100 entities shall be
determined on the basis of market capitalisation, as
at the end of the immediate previous financial year
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Provided that any person or entity belonging to
the promoter or promoter group of the listed
entity and holding 20% or more of shareholding
in the listed entity shall be deemed to be a related
party.

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directors and such policy shall be reviewed by the FOHDUO\LQ537SROLF\
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Notwithstanding the above, a transaction involving
payments made to a related party with respect to
brand usage or royalty shall be considered
material if the transaction(s) to be entered into
individually or taken together with previous
transactions during a financial year, exceed two
percent of the annual consolidated turnover of the
listed entity as per the last audited financial
statements of the listed entity.
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the date of publication of its standalone and PDGH WR 6WRFN 
consolidated financial results for the half year, ([FKDQJHV
disclosures of related party transactions on a
consolidated basis, in the format specified in the
relevant accounting standards for annual results
to the stock exchanges and publish the same on its
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Explanation- For the purposes of this provision, LQFOuded “20%” instead 
notwithstanding anything to the contrary contained of “10%” 
in regulation 16, the term “material subsidiary”  
shall mean a 11 subsidiary, whose income or net  
worth exceeds twenty percent of the consolidated  
income or net worth respectively, of the listed entity  
and its subsidiaries in the immediately preceding  
accounting year.”  
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