n NISM Certifications
XV NISM Series XV
Medium

As per SEBI corporate governance standards, independent directors should constitute at least 75% of the board if the chairman is an executive director. True or False?

Practice question from NISM XV Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    True

  2. False

    Correct answer

Why this is the answer

SEBI mandates independent directors to be at least 50% of the board if the chairman is an executive director. In other scenarios, at least 1/3 of the board must be independent.

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