The Securities and Exchange Board of India (SEBI) has expressed concerns over the current state of corporate governance practices. The market regulator is especially concerned about current practices that relate to the role of independent directors. Speaking about the issue, SEBI chairman Ajay Tyagi said, “Auditors committee is not working, independent directors are not independent and there is no stewardship code, then definitely there are serious issues. This is a serious issue which is engaging the attention of SEBI. We will come out with more discussion soon.”
Sources said that these comments have come in the wake of recent boardroom battles, a recent case being the trouble that had started at TATA Group. Another recent controversy was related to the differences that had emerged between some promoters and members of the top management at Infosys. Both these cases made top headlines in the media and were widely discussed among the general public. It had forced SEBI and the government to keep track of the situation in order to ensure that there was no harm done to small investors and other stakeholders. It may be recalled that in January, SEBI had issued a guidance note on board evaluation at listed companies. The note had directed companies to clearly define the role and function of the chairperson to avoid conflict.