Markets regulator Security and Exchange Board of India (SEBI) has come out with new rules for re-classification of a promoter as a public investor, wherein an outgoing promoter will have to relinquish special rights as well as control over the affairs of the listed firm and not be allowed to hold over 10% stake.
Besides, the promoter would not be allowed to have any representation on the board of directors or act as a key managerial person in the listed entity. Furthermore, the promoter seeking re-classification must not be a wilful defaulter or a fugitive economic offender.
Source- The Indian Express
Static/Current Takeaways Important For IBPS Clerk Mains Exam 2018:
- SEBI- Securities and Exchange Board of India.
- SEBI Chairman- Ajay Tyagi, Headquarters- Mumbai.