Section 27 in The Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012
27. Compensation and tenure of key management personnel.
(1)A recognised stock exchange or a recognised clearing corporation shall constitute a compensation committee comprising a majority of public interest directors and chaired by a public interest director.(2)The compensation committee shall determine the compensation of key management personnel in terms of a compensation policy.(3)The compensation policy shall be in accordance with the norms specified bythe Board.(4)The compensation payable to the managing director shall be as approved by the Board and the terms and conditions of the compensation of the managing director shall not be changed without prior approval of the Board.(5)The compensation given to the key management personnel shall be disclosed in the Report of the recognised stock exchange or recognised clearing corporation under section 217 of the Companies Act, 1956.(6)The tenure of a key management personnel, other than a director, shall be for a fixed period, as may be decided by the compensation committee.
