The working group under the chairmanship of DM Satwalekar, constituted by the Reserve Bank of India, has suggested that in the case of public sector enterprises (PSEs), improvement in governance mechanism could be brought about by transferring the actual governance functions from the concerned administrative ministries to the boards, specialised agencies (trusts, SPVs, etc.) formed for the purpose.
The group, which was constituted to identify the sources and nature of potential conflicts of interest in the financial sector and possible actions to be taken, examined the various conflicts of interest situations, both nationally and internationally, and attempted at providing an integrated framework of forward-looking measures to prevent such situations.
The group has also suggested professionalising and streamlining the appointment process of directors, besides suitably revamping the compensation and remuneration structures.
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