BS reported that 21 out of 43 listed public sector undertakings do not have the required number of independent directors, as stipulated by the Securities and Exchange Board of India.
According to Directorsdatabase.com, the major PSUs that fail to comply with the criterion under Clause 49 of SEBI regulations are
1. National Mineral Development Corporation
2. Minerals and Metals Trading Corporation
3. Steel Authority of India Limited
4. Oil and Natural Gas Corporation
5. Indian Oil Corporation
6. Bharat Heavy Electricals Limited.
This comes at a time when disinvestment is high on the government’s agenda and a number of PSU follow on offers are expected to hit the market. For instance, a follow on offer of NMDC which aims to divest 8.38 stake recently got approved by the Cabinet Committee on Economic Affairs. It plans to raise up to USD 3 billion.
Experts said the issue might take longer than necessary to hit the market. The government will have to appoint independent directors on the boards of these companies before they proceed with the follow on offers. Other PSUs that are in the race include NTPC, Rural Electrification Corporation and MMTC. REC has already filed the prospectus with SEBI.
(Sourced from Business Standard)
