Markets regulator SEBI on Friday flagged concerns relating to corporate governance in firms, especially practices related to independent directors and auditors.

Lacunae in concept “Corporate governance norms should be much higher in listed companies and we are looking at it,” SEBI Chief Ajay Tyagi said, while also expressing dissatisfaction at the performance of independent directors and auditors.

“There are many lacunae in the concept of independent directors,” Tyagi said at the annual general meeting of CII, noting that there have been several instances where such appointees resign without any explanation.

Speaking to reporters on the sidelines, he added, “Auditors’ committee is not working, independent directors are not independent.”

Stewardship code SEBI along with the insurance regulator IRDA will also soon come out with a Common Stewardship Code, which would be like a code of conduct for investors. Tyagi said this will not only increase tax efficiency but also accountability and move away from passive interest of institutional investors.

Meanwhile, expressing satisfaction at the pick-up in corporate debt, he said SEBI is working on more steps to deepen the corporate bond market.

“We are working on the development of report market in corporate bonds and a credit enhancement fund with the Ministry of Finance,” he said.

Tyagi, who took over as Chairman of SEBI on March 1, also outlined plans for the coming months and said the focus will be on more reforms, including primary markets and IPOs.

He said there are some issues “on the table” relating to the Takeover Code, which will also be taken up soon. SEBI may choose to bring in outside experts to review it in a time-bound manner.

Co-location issues Responding to queries, Tyagi said the planned initial public offering of the NSE will take “a few months” as co-location issues need to be sorted out.

The NSE had in December last year filed draft papers with SEBI to raise about ₹10,000 crore through the IPO.

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