Empowering Independent Directors: A Call for Constructive Governance

Sebi chairman Tuhim Kanta Pandey emphasizes the crucial role of independent directors, urging them to adopt a constructive approach beyond compliance. Following a significant resignation at HDFC Bank, Pandey stresses continuous capacity building, collaboration with regulators, industry bodies, and educational institutions to enhance corporate governance.

Sebi chairman Tuhim Kanta Pandey highlighted the significant role played by independent directors, urging a shift from mere compliance to a more constructive approach in governance. This call to action comes in the wake of Atanu Chakraborty's resignation from HDFC Bank, which impacted investor confidence.

Pandey underscored the need for independent directors to engage with management on governance, risk, and financial matters beyond just oversight. He advocates for a more dynamic nature of governance, encouraging directors to work collaboratively towards solutions rather than merely critiquing management decisions.

Addressing capacity building, Pandey announced an initiative involving regulators, industry bodies, and academic institutions to ensure continuous skill enhancement for directors in boardrooms facing complex technological and regulatory challenges. He likened corporate governance to the body's nervous system, impacting markets significantly with any news flow.

(With inputs from agencies.)