PSU Boards Await Clearance for Independent Directors

Delays invite penalties from exchanges; proxy advisors point to the govt approval process

- Dipali Banka

Over three-fourths of listed public sector firms that do not have the requisite number of independent directors continue to wait for clearance from various government departments.

As many as 62 out of 79 listed public sector undertakings (PSUs) lack the mandated number of independent directors, according to data from Prime Database, a market data tracking firm.

Despite repeated regulatory reminders, these companies await clearances from their respective ministries, delaying crucial appointments and inviting penalties from stock exchanges.

The list of non-compliant PSUs includes banks, oil and gas companies, metals and mining firms, power utilities, telcos, railways, engineering firms.