PSUs can ask Sebi for time to meet governance norms
The government could formally ask the Sebi to extend the December 31 deadline for PSUs to meet the new corporate governance norms.
By Radhika Bhalla, TNN |
NEW DELHI: The government could formally ask the Sebi to extend the December 31 deadline for PSUs to meet the new corporate governance norms.
The Department of Public sector Enterprises (DPE) has written to different ministries concerned, asking them to ensure that all listed companies meet the Sebi deadline for appointment of independent directors. However, if some of the PSUs are unable to meet the December 31 deadline, then the DPE or the relevant administrative ministry will write to Sebi to consider extending the deadline.
According to sources, most of the oil companies will be able to ensure that 50% of their board members are non-functional directors. Further, NTPC and SAIL, too, should be able to meet the target, sources said. However, MTNL is likely to have 3-4 vacancies.
���The DPE has shortlisted candidates out of the panel that was forwarded by various ministries to the search committee. Almost 100 names have been forwarded to the Appointments Cabinet Committee,��� said a government source.
The Department of Public sector Enterprises (DPE) has written to different ministries concerned, asking them to ensure that all listed companies meet the Sebi deadline for appointment of independent directors. However, if some of the PSUs are unable to meet the December 31 deadline, then the DPE or the relevant administrative ministry will write to Sebi to consider extending the deadline.
According to sources, most of the oil companies will be able to ensure that 50% of their board members are non-functional directors. Further, NTPC and SAIL, too, should be able to meet the target, sources said. However, MTNL is likely to have 3-4 vacancies.
���The DPE has shortlisted candidates out of the panel that was forwarded by various ministries to the search committee. Almost 100 names have been forwarded to the Appointments Cabinet Committee,��� said a government source.
However, any of the ministries is finding it difficult to meet the stipulated deadline for appointment of independent directors, either the DPE or the concerned ministry may write to the Sebi to consider extending the deadline, source said.
All the panels forwarded to the Search Committee of Department of Public Enterprises have been scrutinised and names of successful candidates shortlisted. The names of persons recommended for the posts are now awaiting final clearance by the ACC.
According to the Sebi guidelines, boards of all the listed companies with chairman as chief executive must have 50% directors who are independent directors. Further, the proposal to consider government nominees on boards of PSUs as independent directors has been rejected by Sebi.
Companies must comply with the deadline by the end of this year or face delisting. There are 28 listed PSUs of which eight are designated as navratna��� companies. While the petroleum ministry has five companies on the list ��� ONGC, IOC, HPCL, BPCL and GAIL ��� the steel ministry has only SAIL.
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