Monday, 2 April 2018

SEBI looks to overhaul corporate governance at public sector enterprises


The regulator has recommended measures to government to ensure independence of PSEs from the administrative ministry and create an autonomous environment.

Unhappy with governance standards in public sector enterprises (PSEs), the Securities and Exchanges Board of India (SEBI) has recommended seven measures to improve their functioning.
The measures include ensuring the independence of the PSE from the administrative ministry and creating an autonomous environment. SEBI’s board has agreed to send a copy of the recommendations to the government for necessary action.
The measures were presented to the board on March 28.
"All listed entities, government or private, to be at par on governance standard. So, all listed PSEs should be compliant with LODR [Listing Obligations and Disclosure Requirements],” the regulator said in its presentation. Under LODR, stock exchanges need to be informed of every price sensitive information, as and when it happens.
“If the government and PSEs management create such environment then certainly [it will] enhance the value of the national asset. However, we should make a timeframe for creating such an environment,” a source close to the development told Moneycontrol.
SEBI’s board has referred the recommendations to the government for feedback and necessary action.
 Independent boards
SEBI’s recommendations are focused on the boards of PSEs.
“In the past, we have seen politicians taking seats on the boards of public sector enterprises,” the source said.
SEBI recommended that the government consolidate its stake in listed public sector enterprises under holding entity structure by April 2020 along with ensuring that PSEs have an independent board with diversified skill sets.
Earlier, in compliance with the minimum public shareholding of 25 percent, PSEs were given an additional year’s time, which will end in August 2018


  1. Very good post on trading it will be helpful for traders. I also appreciate to give information like this which is well written.
    Stock future positional calls
    intraday cash tips


  2. This post is very useful for us. Thanks for sharing this post.

    Equity cash tips

    Equity Future Premium

  3. Thanks for contributing your important time to post such an interesting & useful collection. It would be knowledgeable & resources are always of great need to everyone. There are some additional factors which can be known from stock market recommendation free of cost.
    Free Trial

  4. I have learn lots of things about market from your post.
    we also provide successful one tip one day which will increase your profit.

  5. Thanks for the news! This will inform my decision in the future

    Shares to Buy


Blogger Templates