SEBI vide Circular No. SEBI/HO/CFD/CMD/CIR/P/2017/004 on Thursday, 5th January, 2017 stated that as The Companies, Act 2013 & SEBI (LODR) Reg., 2015 contains several mandatory provisions of Board Evaluation for listed entities. However, this being at nascent stage in India, to provide clarity & guidance to listed entities, a guidance note is issued by SEBI to improve evaluation process, derive best possible benefit & achieve the objective of entire Board Evaluation Process.
The said Guidance Note for Board Evaluation covers following aspects:
- Subject of Evaluation;
- Objectives and criteria to be adopted for evaluation of different persons;
- Feedback to the persons being evaluated;
- Action Plan based on the results of the evaluation process;
- Disclosure to stakeholders;
- Frequency;
- Responsibility; and
- Periodical Review.
The detailed Guidance Note can be accessed from the Circular of SEBI available at the following link:SEBI Circular_05.01.2017_GuidanceOnBoardEvaluation