SEBI plans capacity-building network to strengthen independent directors

SEBI has announced plans to establish a capacity-building network to enhance the skills of independent directors. During a session at the Bharat Chamber of Commerce, SEBI Chairman Tuhin Kanta Pandey explained that the initiative aims to foster greater interaction among stakeholders and improve the overall standard of independent directors.

The proposed network would bring together important institutions, professional bodies, academia, and industry chambers to upgrade the capacity-building system for independent directors. Pandey emphasized the need to strike a balance between regulatory oversight and the independence of directors, stating that the regulatory framework and corporate governance code already provide safeguards and empower independent directors to fulfill their responsibilities.

He also highlighted that independent directors should not be seen as a cushy assignment or a part-time engagement, given the increasing complexity of corporate governance. In addition to regulatory compliance, Pandey stressed that independent directors should actively engage in improving companies' performance and protecting the interests of all shareholders, particularly minority investors.

SEBI is currently in the process of launching a consultative process to gather input from various stakeholders on enhancing the capacity-building network for independent directors.