Capital markets regulator Sebi has asked the Government to amend the Companies Act to ensure that a director declared by it as a disqualified person should immediately vacate the position, a plea triggered by defaulter businessman Vijay Mallya’s reluctance to do so.
Under the Companies Act, the office of a director becomes vacant in case of he or she being disqualified by an order of a court or a tribunal, a
mong other reasons, but there is no explicit mention of an order by the Securities and Exchange Board of India (Sebi), which is mandated with regulation of thousands of listed firms in India.
