The National Stock Exchange has asked about 200 companies listed on it to consider whether directors disqualified by the Ministry of Corporate Affairs (MCA) should continue on their boards.Most of these are small, often defunct, private companies but many of them share directors with some top firms. "Any prudent and responsible board focused on governance would say that till your situation is resolved, please step down," he said. According to sources, NSE's missive followed a meeting with top Securities and Exchange Board of India officials.The move was triggered by the MCA disqualifying more than 300,000 directors of companies that have fallen behind in statutory filings. The Companies Act stipulates that firms will be struck off the registry of the Registrar of Companies and their directors disqualified if they fail to file annual returns and financial statements for three consecutive years. Companies can appeal to the National Company Law Tribunal.

Source: Economic Times September 28, 2017 18:56 UTC