SEBI Chairman Ajay Tyagi on Monday said that the SEBI-appointed Uday Kotak headed panel will also examine the corporate governance related issues of listed public sector enterprises.

He was speaking at an interactive meeting with chief executives of public sector enterprises, organised by SCoPE in the Capital.

Listed public sector enterprises are now keen that the minimum number of independent directors in their boards be reduced from the current 50 per cent norm and also they be exempted from evaluation of directors. They are also seeking exemption from succession planning.

It may be recalled that market regulator SEBI had in early June set up a committee under the Chairmanship of Uday Kotak, Executive Vice-Chairman and Managing Director of Kotak Mahindra Bank, to help improve the standards of corporate governance of listed companies in India.

Besides Kotak, the panel comprises 20 members including representatives of corporate India, stock exchanges, professional bodies, investor groups, chambers of commerce, law firms, academicians and research professionals. The Kotak-led panel has been tasked with, among other things, making recommendations for "ensuring independence in spirit of independent directors and their active participation in functioning of the company". Independence of independent directors is among the weakest links of listed companies in India. Despite efforts in the past two decades, this aspect has still not been squarely addressed by the regulator and policy makers, say corporate India observers.

Rating agencies

Later, replying to a query on credit rating agencies, Tyagi told reporters that SEBI will in next one month come out with a discussion paper on credit rating agencies.

"We are not happy with the current state of affairs of rating agencies," he said.

On NSE co-location matter, Tyagi said that it was a serious matter and it is for them (NSE) to decide whether they need to file revised financial statements and Draft Red Herring Prospectus (DRHP).

"If i was an issuer I will see that these are addressed and then only go back to DRHP", Tyagi said.

On whether it is statutory to file revised DRHP, Tyagi said that " I think they themselves will do it".

srivats.kr@thehindu.co.in

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