Stock market regulator Securities & Exchange Board of India (Sebi), on Wednesday, ruled out relaxing norms on independent directors for public sector companies, saying corporate governance norms help boost confidence of investors in India Inc.

Contesting the views of  Oil & Natural Gas Corporation (ONGC) Chairman R S Sharma that the norms, as contained in Clause 49 of listing agreement, come in the way of level-playing field between PSUs and private players, Sebi Chairman M Damodaran said they are same for all companies. Under Clause 49, it is binding upon the listed companies to fill 50 per cent of their boards with independent directors in case they have executive chairman and one-third in case they have non-executive chairman.

Few exceptions

“The solution suggested that corporate governance requirement should be less for PSUs is something I cannot persuade myself to agree with,” Mr Damodaran said at a conference on Corporate Governance.   Notwithstanding the difficulties PSUs face, solution must be found somewhere else and not in diluting corporate governance norms, he added.

“Today, India is recognised as great investment destination...It is that commitment of Indian corporates who, with few exceptions, have seen value in corporate governance and who know that over time, not just markets but investors will also be valued,” Mr Damodaran said.

Earlier,Mr Sharma said PSUs are already over-regulated as they are accountable to the Parliament, CAG, CVC and now RTI.