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SEBI Chief: Directors' Role Beyond Compliance
6 Apr
Summary
- Independent directors must adopt a constructive approach to duties.
- Their role extends beyond compliance to governance and financials.
- SEBI plans capacity building for directors.
SEBI Chairman Tuhin Kanta Pandey has underscored the significant responsibilities of independent directors, urging them to adopt a constructive approach. He stated that their role transcends basic compliance, encompassing critical functions like evaluating management information, governance structures, risk management, and financial health.
Pandey highlighted that an independent director's function is not solely about identifying issues but also about actively supporting and finding solutions through accountability. He noted that markets react swiftly to corporate governance news, making their proactive involvement vital for stakeholder confidence.
To bolster these capabilities, SEBI intends to launch a large-scale, collaborative initiative for the capacity building of independent directors. This program will involve regulators, industry bodies, professional organizations, and academic institutions, recognizing that continuous learning is essential given the complex, interdisciplinary challenges faced by boardrooms today.
