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Over 200 Independent Directors to be appointed to CPSEs shortly

By IndianMandarins- 17 May 2019
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If some top sources are to believed, days before May 23 results of Lok Sabha polls 2019 the NaMo administration has fast-tracked the process of appointment of over two hundred Independent Directors (IDs) on the Boards of over a hundred Central PSUs. The Selection Committee (SC) headed by DOPT Secretary has reportedly met this week to select the names from among over 300 likely choices.

 

The committee also includes two independent experts. Over a dozen women too are in the race to be included in the list of IDs.

 

The list is being finalised expeditiously and may shortly be sent to the DOPT which will send the panel to the ACC, or Appointments Committee of the Cabinet, to clear the selectees. The process is expected to be completed as early as by the end of this week.

 

The Election Commission of India has reportedly given its nod to the NaMo administration for these appointments. The EC clearance has been granted in view of SEBI’s pressure to comply with the norms laid down by it.  

 

In power circuits it is being discussed as why the Govt is in such great hurry to clear such a huge number of IDs appointments. Yet, it may well be underlined that the Government has been under constant pressure from the market regulator for compliance of SEBI’s Clause 49 and provisions of Companies Act 2013. These laws are now considered to be major tools for corporate governance norms with the idea to ensure corporate fairness, transparency and accountability.

 

The Companies Act 2013 provides that every company listed at the stock exchange has to appoint at least one woman director. Clause 49 of the Listing Agreement is applicable to companies which wish to get themselves listed in the stock exchanges of the country.  

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