Dec 31, 2020

SEBI’s Informal Guidance Regarding Regulation 24 of the Listing Regulations

Under Regulation 24(3) of the Listing Regulations, a listed company is required to place the minutes of the meeting of the board of directors of the unlisted subsidiaries at the listed company’s board meeting. Through its informal guidance dated October 22, 2020 to Redington (India) Limited, SEBI has clarified that for the purpose of compliance with Regulation 24(3) of the Listing Regulations, if a listed entity has a foreign subsidiary which is not required to have a board of directors and conduct board meetings, the requirement will be met in accordance with Regulation 24(4) which mandates that the management of the unlisted subsidiary will periodically bring to the notice of the board of directors of the listed entity, a statement of all significant transactions and arrangements entered into by the unlisted subsidiary.

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