Sebi chief stands by norms for directors

Mumbai, Dec. 15: Sebi chairman U.K. Sinha today defended the current regulations on independent directors and said there was no urgency to review them.

Sinha's comments come at a time the spat between the Tatas and Cyrus Mistry has put the spotlight on independent directors.

Tata Sons has moved a resolution to remove Nusli Wadia as a director of Tata Motors, Tata Steel and Tata Chemicals.

At the recent extraordinary general body meeting (EGM) of Tata Consultancy Services (TCS), Aman Mehta, the independent director chairing the meeting, had to face tough questions from a few shareholders such as why the independent directors were supporting a resolution to oust Mistry.

According to Sinha, there is "no compelling" reason to review the norms regulating such board members and that the norms prescribed by the market regulator are more stringent than the provisions of the Companies Act.

"The appointment, sacking and role of independent directors is prescribed in the Companies Act as well as Sebi regulations. Sebi regulations in this regard are more tighter than those under the Companies Act. There is always a need to review norms. But at this stage, I don't see any compelling need to review them," Sinha told reporters on the sidelines of a summit of the Association of Investment Bankers of India.

On the listing of domestic stock exchanges overseas as proposed by the National Stock Exchange, Sinha said "an exchange in India, according to our regulations, cannot list outside India".

Securities and Exchange Board of India ( SEBI )