The Securities and Exchange Board of India (SEBI) has tweaked the criteria for determining fit and proper person to become a board member of listed companies.
“Fit and Proper Person criteria shall be principle based or/and rule based as applicable. The applicant or intermediary shall have competence and capability in terms of infrastructure, manpower requirements and financial soundness including meeting the net worth requirement, as provided in the regulations applicable to the applicant or the intermediary. The principle based criteria should include integrity, honesty, ethical behaviour, reputation, fairness and character,” the market regulator said.
The rule based criteria will determine the fit and proper status of the person based on the disqualifications as has been prescribed. Some of such disqualifications include an order of conviction passed against such person by a court for any offence involving moral turpitude or such person has been declared insolvent and not discharged or has been categorized as a willful defaulter or has been declared a fugitive economic offender or against whom an order has been passed by SEBI or any other financial sector regulator.
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