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Market regulator Securities and Exchange Board of India (Sebi) has proposed to replace the concept of “promoter” with “person in control” for India Inc. Let’s find out what warrants such as move and how it could play out.
Who is a promoter?
A promoter can be an individual, a corporate entity or a group of entities with whom vest/s ownership and controlling rights of a company. Under Sebi’s ICDR Regulations (Issue of Capital and Disclosure Requirements), a “promoter” is someone who exercises direct or indirect control over a company.
Direct control can be in the form of significant equity ownership. Indirect control can
