Private Affairs Impacting Public Interest Entities — A Sift Through a Recent SEBI Amendment

The Primary Marked Advisory Committee (‘PMAC’) of the Securities and Exchange Board of India (‘SEBI’) had identified and deliberated on certain challenges and issues arising out of (i) agreements indirectly binding public listed entities, (ii) special rights granted to shareholders of a public listed entity, (iii) sale, disposal or lease of an undertaking of a listed entity and (iv) the provision for board permanency in the context of a public listed entity. Based on PMAC recommendations, SEBI released a Consultation Paper¹ for public feedback, basis of which released a Board Memorandum² and consequently, on 14th June, 2023 introduced certain amendments to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’) under the SEBI (Listing Obligations and Disclosure Requirements) (Second Amendment) Regulations, 2023 (‘Listing Regulations Amendment’).³

1 Consultation Paper on 'Strengthening Corporate Governance at Listed Entities by Empowering Shareholders' on February 21, 2023.
2 Board Memorandum on ‘Strengthening corporate governance at listed entities by empowering shareholders - Amendments to the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015’ dated 17th April, 2023
3 The Listing Regulations Amendment came into force on July 14, 2023 (exce
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