Parekh bats for Kampani

MUMBAI: Deepak Parekh, chairman of HDFC, has raised the issue of liabilities of an independent director in the recently held meeting of Securities Exchange Board of India���s primary market advisory committee. Mr Parekh is a member of the primary market committee.

Mr Parekh was referring to what is perceived by the business community as the harassment faced by Nimesh Kampani, chairman of JM Financial from the Andhra Pradesh police in the case of Nagarjuna Finance, which had defaulted on payments to its fixed deposit holders.

Despite Mr Kampani resigning from Nagarjuna Finance���s board as an independent director years before the default, the Andhra Pradesh police has filed charges against him. Mr Kampani, one of India���s most respected financial sector veterans, is at present living abroad.

Mr Parekh said an independent director should be ring-fenced from the wrongdoings of a company���s management. Early this month, a Supreme Court bench dismissed the bail plea of Mr Kampani.