The government is streamlining the process of appointment of independent directors in Public Sector Undertakings (PSUs), a senior government official said on Friday.
“We are in the process of shaping a note that actually gives timelines to each part of the process (for appointment of independent directors),” Department of Public Enterprises Secretary Bhaskar Chatterjee told reporters on the sidelines of an All-India Management Association (AIMA) function here.
He further said the note will be placed before the Cabinet in the next three to four months.
As per market regulator SEBI’s guidelines, it is mandatory for a company to fulfill the criteria for 50 per cent representation by independent directors on the board, if the chairman is executive, before getting listed on the bourses or hitting the capital market.
In case the chairman is non-executive, the rules demand that at least one-third of the board should comprise independent directors.
The Department of Public Enterprises (DPE) wants to expedite the process of recruiting independent directors for state-owned firms.