January 19, 2023
Summary of the Notification issued by SEBI on 17/01/2023
SEBI notifies SEBI (LODR) (Amendment) Regulations, 2023:
Key highlights of the amendment:
1. Applicability of Corporate Governance provisions to Infrastructure Investment Trusts (InvIT) and Real Estate Investment Trusts (REIT): (Regulation 15) w.e.f. 1st April, 2023:
The requirement of the Board of the Manager of the high value debt listed entity that is a Real Estate Investment Trust to comply with the provisions of Regulation 15 to 27 of the LODR relating to corporate governance is omitted. Instead in case of InvITs and REITs, the specific corporate governance provisions applicable to them is mandated.
2. Approval of shareholders required for re-appointment of a person to the Board of Directors or as a manager: (Regulation 17):
The regulation is amended to also require shareholders approval in case of re-appointment of a person to the Board of Directors or as a manager, at the next general meeting or within 3 months from date of appointment, whichever is earlier.
In case of a Public Sector Company, shareholders approval for appointment/ re-appointment will have to be taken at the next general meeting.
3. Additional Disclosure in the Corporate Governance Report (Schedule V):
The listed entity is required to disclose details of its material subsidiaries including the date and place of incorporation and name and date of appointment of statutory auditors of the subsidiaries, in the Corporate Governance Report.