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SEBI suggests changes in Clause 49
March, 12th 2007

Market regulator SEBI on Friday proposed changes in Clause 49 of the listing agreement relating to corporate governance, suggesting that government nominees should not be considered as independent directors.

The regulator also suggested a time-frame for appointment of a new independent director after the resignation of the existing one which cannot exceed 90 days and stipulation of the minimum age of 21 for becoming an independent director.

The new provision relating to PSUs would concern a large number of public sector companies as the government appoints its nominees on their Boards.

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