Context: Recently, The regulator’s board "SEBI" also tightened the norms for independent directors. It said that independent directors can be appointed only through a special resolution passed by shareholders.
Key Changes

• It said that independent directors can be appointed only through a special resolution passed by shareholders. 
• A special resolution requires 75 per cent of votes in favour to be passed. The regulator has also elaborated and strengthened the disclosure requirements for the skills required to be an independent director. 
• Moreover, the regulator also said that nomination and remuneration committee of the board of directors, which decides on appointments and compensation, and the audit committee should have two-thirds independent directors compared to a simple majority now. 
• The regulator also stipulated that all related party transactions shall be approved by only independent directors on the audit committee.
• Further, “the entire resignation letter of an independent director shall be disclosed along with a list of her/his present directorships and membership in board committee.”
• Also, there will be a one-year cooling period for an independent director transitioning to a whole-time director in the same company/holding/subsidiary/associate company or any company belonging to the promoter group.

Accredited Investors

• SEBI has approved a new category termed "accredited investors" those are wealthy, well-informed investors who will be allowed to invest in riskier products, not usually allowed to individuals. 
• These entities could be individuals, family trusts, proprietorships, etc.
• SEBI will specify the eligibility criteria for such investors who can get the accreditation from agencies such as stock exchanges, subsidiaries of depositories and so on.
• Accredited investors will be given the flexibility to invest the less than minimum amount mandated in Sebi rules and, subject to certain conditions, get relaxation from regulatory requirements.

Significance

• The changes seek to strengthen the corporate governance practices as well as attract more investors.
• It will help maintain the interest of minority shareholders in the corporate boardroom where their representation is minimal.
• This should hopefully result in truly ‘independent’ independent directors and not those with merely a semblance of independence.

Other Changes

• Sebi’s board also increased the maximum reward amount for an informant who blows the whistle on insider trading to Rs 10 crore from Rs 1 crore now. It has also expedited the payment of rewards to informants.

For Asset Management Companies

• The regulator has also approved amendments to its mutual fund regulations which requires asset management companies to require more of their own funds in riskier schemes so that they have more skin in the game. 
• Currently, AMCs have to invest only one percent of the amount raised in a new fund offer, or Rs 50 lakh, whichever is lower.
• Further, Sebi also allowed debt issuers who have less than three-year track record to raise funds provided they issue only on a private placement basis on an exchange bond bidding platform to qualified institutional buyers (QIBs).