You are a practicing Company Secretary named AAA and has been approached by Secretarial Department of LMN Ltd. (a listed company) seeking your opinion on the appointment of following person as Independent Director on the

Ms. Avneet Kaur, whose spouse once supplied raw material of ₹ 40 lakh during the preceding financial year. Yes, Ms. Avneet Kaur can be appointed as an independent director, since as per Regulation 16(1)(b) of SEBI (LODR) Regulation, 2015, relatives of Independent Director hasn't or hadn't any pecuniary relationship or transaction with the listed entity, its holding, subsidiary or associate company, or their promoters, or directors, amounting to two percent or more of its gross turnover or total income or ₹ 50 lakh rupees, whichever is lower, during the two immediately preceding financial years or during the current financial year. Since in the given case the amount of pecuniary relationship is less than the prescribed limit, she can be appointed as an Independent Director.