Sebi for Overhaul of Firms’ Board Governance
The Securities and Exchange Board of India (Sebi) is in favour of a major overhaul of the way boards of listed firms discharge their duties, including for appointment and removal of directors, and also wants their audit committee to be empowered to identify future risks. While a 'guidance note' was issued last month by the Sebi on board evaluation at listed companies, there is a view that the regulator should come out with a new set of regulations to ensure greater compliance. The move assumes significance in the wake of recent boardroom battle at the Tata group and the controversy surrounding the reported differences between some promoters and the top management at Infosys. “The concept of board evaluation is very nascent in India and forcing the companies to follow a new set of rules in this regard may not be warranted at this stage," a top official said.