The Securities and Exchange Board of India (Sebi) has decided to make public the names of “professional directors”, especially those that sit on the boards of many companies without owning a single share in any.
SEBI chairman M Damodaran said in Bangalore today that the days of such directors, who tend to “outlive” the chief executives, were almost over. The market regulator is looking to usher in the practices of better corporate governance.
“There are so called professionals and we will go public with these names very soon (directors, who have been in institutions and organisations promoted by institutions, which in the public perception supposedly appear as public institution). But people, who, without owning even one share, some of these are not listed, have been on boards for 10-11 years as if they own it. They have stayed on to demonstrate that they can outlive any CEO or promoters, norms and regulations. That kind of an entity needs to be tackled,” he said.
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