Sources said there are vacancies at the independent director level in the public sector sector, leading to regulatory non-compliance.
Sources said the list of eligible persons to be appointed as independent directors has been sent to the Prime Minister’s Office and a final decision will be taken soon.
The Appointments Committee of the Cabinet, headed by Prime Minister Narendra Modi, makes all high-level appointments, including those of independent directors.
As per the Companies Act 2013, every listed public company should have at least one third of the total number of directors as independent directors.
Since many listed public sector banks (PSBs) and some financial institutions (FIs) have less than the mandated number of directors, this is in violation of the Companies Act as well as the listing norms of market regulator Securities and Exchange Board of India. said.
For example, some banks like Indian Overseas Bank, Indian Bank and
Independent directors do not conform to the norms.
except the state
(SBI) and Bank of Baroda, most of the state-owned banks have the post of chairman vacant. The posts of Workmen Director and Officer Director representing the employees and officers of the banks are vacant for the last 7 years.
There are 12 public sector banks, four public sector general insurance companies and one life insurance firm. Also, there are some specialized insurance companies such as Agriculture Insurance Company of India Limited.
In addition, there are state-owned financial institutions like IFCI, IIFCL, ECGC Ltd and EXIM Bank.
The boards of directors of nationalized banks are guided by the provisions of section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and the Nationalized Banks (Management and Miscellaneous Provisions) Scheme, 1970.