Sebi chief flags concerns over corporate governance practices

SEBI Chairman Ajay Tyagi said much needs to be improved when it comes to functioning and appointment of independent directors and audit committees at listed companies.

By: PTI | New Delhi | Published:July 3, 2017 1:41 pm
SEBI Chairman Ajay Tyagi said much needs to be improved when it comes to functioning and appointment of independent directors and audit committees at listed companies.

Emphasising on the need for improved corporate governance practices at listed companies, Sebi chief Ajay Tyagi today said 20 per cent of public sector enterprises still do not have a single woman director. He also said that in many cases, independent directors are appointed and removed at whims and fancies of promoters of companies.

“Twenty per cent of public sector companies still don’t have a single woman director,” Tyagi said here. Under the regulations, listed companies are required to have at least one woman director on their boards.

Tyagi said much needs to be improved when it comes to functioning and appointment of independent directors and audit committees at listed companies.

He made these remarks at an interactive session with CEOs and senior executives of public sector enterprises organised by SCOPE. The Standing Conference of Public Enterprises (SCOPE) is an apex professional organisation representing central government public enterprises. Responding to a query, Tyagi said the role of nominee directors needs to be looked into.

Generally, nominee directors are those appointed by promoters and other major shareholders, including the government in case of PSUs, on boards of the companies.

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