Capital market watchdog, Securities and Exchange Board of India, today said it will seek public comments after it receives Kotak committee report on improvement of corporate governance standards including function of independent directors in September.
“The Kotak committee will submit the report in September and then we will go for public consultation and then it will be placed before the board,” SEBI executive director Ananta Barua said here today on the sidelines of Calcutta Chamber of Commerce.
He did not gave any timeline by when the watchdog will come out with final guidelines on the subject.
“It (corporate governance) is high on our agenda,” Barua said.
The watchdog set up a 21-member committee under the chairmanship of veteran banker Uday Kotak to suggest ways to further improve corporate governance standards of listed companies.
The panel will make recommendations on ensuring independence in spirit of independent directors and their active participation in functioning of the company.
“SEBI Chairman Ajay Tyagi recently criticised saying “independent directors are not independent“.
“There are too many lacunae with respect to the concept of independent directors with many having no commitment to any cause. Some independent directors are appointed at the mercy of promoters“(with) no prescribed qualifications or procedures, favouritism, (many are from) closed clubs (such as) only those people being in all boards, no commitment to any cause,” Tyagi had said.
Barua indicated the regulator was keen on having stricter norms for independent directors, including with respect to their appointment, removal and larger responsibility as part of a company’s board.
He declined to speak on the ongoing investigations on National Stock Exchange.