New 👉 Ask your RBI Grade B 2025 Preparation Queries Here!!

    Register

    Question

    When a member is not allowed to participate in the

    meeting of the Board?
    A When he is a director of a company Correct Answer Incorrect Answer
    B When he has indirect pecuniary interest in the matter coming up for consideration Correct Answer Incorrect Answer
    C When he is a director of a company and who as such director has any direct or indirect pecuniary interest in any matter coming up for consideration Correct Answer Incorrect Answer
    D When he is owner of a company Correct Answer Incorrect Answer
    E When his participation is questionable Correct Answer Incorrect Answer

    Solution

    Section 7A of SEBI Act Member not to participate in meetings in certain cases.—Any member, who is a director of a company and who as such director has any direct or indirect pecuniary interest in any matter coming up for consideration at a meeting of the Board, shall, as soon as possible after relevant circumstances have come to his knowledge, disclose the nature of his interest at such meeting and such disclosure shall be recorded in the proceedings of the Board, and the member shall not take any part in any deliberation or decision of the Board with respect to that matter.

    Practice Next