Norms soon for independent directors on PSU boards

 “We are working on formulating guidelines for selection of independent directors on boards of PSUs. Quality of Independent Directors in PSU boards needs to be upgraded,” Heavy Industries and Public Sector Enterprises Minister Praful Patel told newspersons here on Wednesday.

“Unfortunately there are many PSU boards, which are being represented by people having no domain of expertise or little expertise. Some of them do not contribute to the functioning the company,” he said. Department of Public Enterprises (DPE) Secretary Bhaskar Chatterjee indicated that a Cabinet note was being prepared for streamlining the process of selection of independent directors on PSU boards.

“We hope to place the draft of guidelines for selection of Independent Directors before the Cabinet in three to four months time,” he hinted.

Sebi guidelines

Keeping the Securities & Exchange Board of India guidelines in mind Department of Public Enterprises is keen on expediting the process of recruiting Independent Directors for Public Sector Undertakings.

“We are working on widening the talent pool from which we can draw Independent Directors from various walks of life including the private sector,” he said.