More Stories

Informist, Monday, Apr. 6, 2026

 

MUMBAI – Boardrooms of Indian companies need to be more effective in implementing corporate governance rules and the same is possible without additional regulations, Securities and Exchange Board of India Chairman Tuhin Kanta Pandey said Monday. Pandey said independent directors must evolve to take a "value-driven" approach and not a "compliance-driven" approach.

 

SEBI has observed a gap in effective translation of corporate governance rules into outcomes at boardrooms, he said. "...independent directors are there not only for compliance and pointing fingers at management, but for also supporting and finding solutions through accountability. They need to bear this responsibility in mind," Pandey said at a corporate governance summit organised by the Confederation of Indian Industry.

 

His latest comments on the role of independent directors come after the market was rattled by the sudden resignation of HDFC Bank part-time Chairman and independent director Atanu Chakraborty, who left last month citing differences in "values and ethics". Chakraborty's comments raised concern of governance issues at India's largest private-sector bank. HDFC Bank investors have been left confused over the exact nature of issues that had pushed Chakraborty to quit.

 

Pandey acknowledged that independent directors have to make difficult decisions without being involved in the day-to-day operations of a company. Further, they have to rely on information given by the management while questioning the decisions of the same management. "This makes their role both critical and complex... which is why the conversation must now move beyond who sits on the board to how effectively they are able to contribute once they are there," he said.

To tackle these issues, Pandey said boardrooms should look at building the capacity of independent directors and focus on improving the "quality of engagement" within the existing framework of corporate governance. He said independent directors should focus on understanding the company's business model and the industry. He pushed for independent directors to continously learn about emerging areas such as technology and also from other independent directors.  End

 

Reported by Anshul Choudhary

Edited by Rajeev Pai

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.