With reference to the SEBI Regulations, explain with reasons, the eligibility for appointment of an Independent director in a listed company. (a) Aarav has given his office premises on lease to the company. (b) Ehsaan is

As per the Regulation 16 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015: "Independent director" means a non-executive director, other than a nominee director of the listed entity who, satisfies the conditions as prescribed therein. It also states that such director neither himself/herself, nor whose relative(s) - holds together with his relative two per cent or more of the total voting power of the listed entity; is a material supplier, service provider or customer or a lessor or lessee of the listed entity; such director is not less than 21 years of age. a) In the given case, Aarav has given his office premises on lease to the company, therefore he is not eligible for appointment as an Independent director. b) In this case, Ehsaan is a component supplier i.e. a material supplier, hence he is not eligible for appointment as Independent director. c) Manav is 20 year old and minimum age prescribed for Independent director is 21 years. Hence he is not eligible for appointment as an Independent director. d) Elika holds 1% of the total voting power, which is less than 2% of limit prescribed, hence he/she is eligible for appointment as an Independent director.