Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 28 SEPTEMBER 2017

Independent Directors: Long Way To Go

PSA
Explore more from PSA

Over the years, the SEBI and Ministry of Corporate Affairs are continuously focusing on incorporating corporate governance principles into the regulatory framework governing listed companies.

IndiaCorporate/Commercial Law
Bhavani Navaneedhan
Bhavani Navaneedhan
Author LinkedIn connections

INTRODUCTION

Over the years, the Securities and Exchange Board of India ("SEBI") and Ministry of Corporate Affairs are continuously focusing on incorporating corporate governance principles into the regulatory framework governing listed companies. Independent directors play a major role in ensuring corporate governance of a company by monitoring the activities of stakeholders and the board. Investors view them as both a safeguard against oppressive practices by the management, as well as a source of competitive advantage as they normally bring varied expertise and can help in strategic decision making. They are responsible for improving corporate credibility and governance standards, maintain transparency in a promoter dominated corporate structure and manage risks. The legal framework governing such independent directors is prescribed in the Companies Act 2013 ("CA 2013") and Clause 49 of SEBI's listing agreement.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

A Sneak Peek Into A Historic Deal In The Entertainment Industry: How Paramount Beat Netflix For Warner Bros. – Lessons And Reforms For India

Chanakya, the ancient Indian strategist and author of the Arthashastra, taught that an opponent is overcome through four means: sama (persuasion), dana (inducement), bheda (division) and danda (force). The contest for Warner Bros. Discovery (WBD) is a modern illustration of all four. Netflix made the first offer and signed a merger agreement with WBD, yet Paramount played each of its cards with care.
IndiaCorporate/Commercial Law
Hammurabi & Solomon Partners
Hammurabi & Solomon Partners
Article

CCPS In India: Why Compulsorily Convertible Preference Shares Remain Central To Venture Capital And M&A Transactions

Compulsorily Convertible Preference Shares (CCPS) remain one of the most widely used instruments for venture capital and private equity investments in Indian companies. Their appeal lies in the ability to combine equity classification with negotiated economic and governance protections. But CCPS are not governed by a single, standalone statutory framework. Their legal treatment is instead shaped by the Companies Act, FEMA and foreign investment rules, tax law, and, where applicable, SEBI regulations.
IndiaCorporate/Commercial Law
King, Stubb & Kasiva
King, Stubb & Kasiva
Article

FCRA Amendment Rules, 2026: Key Changes And Practical Implications

AZB & Partners provides important disclaimers regarding the nature and purpose of their website, clarifying that no solicitation or advertising has occurred and that the information is provided solely at the user's request. The firm outlines the limitations of the website content and emphasizes that accessing it does not create a lawyer-client relationship. Users are informed about their responsibilities when using the site and the firm's intellectual property rights over the content.
IndiaCorporate/Commercial Law
AZB & Partners
AZB & Partners
Article

Retention Clauses Under Scrutiny: Enforcing Service Bonds In India

Indian courts are increasingly treating service bonds as legitimate commercial tools rather than automatic restraints on employment. When an employee leaves prematurely after receiving training or specialized benefits, can employers enforce bonds requiring compensation? This analysis examines the evolving judicial framework that determines when service bonds are valid, what evidence employers must provide, and how courts calculate recoverable damages when bonds are breached.
IndiaEmployment and HR
PSA
PSA
Article

Resetting The Clock – Insolvency And Bankruptcy Code (Amendment) Act, 2026

The Insolvency and Bankruptcy Code (Amendment) Act, 2026 (“Amendment Act”) received Presidential assent on April 6, 2026, marking the most significant reform to India’s insolvency framework since the original enactment of Insolvency and Bankruptcy Code’s (“IBC”) in 2016 (and has yet to become law). Over the last decade, the IBC has transformed India’s insolvency landscape by improving creditor recoveries, shifting control from defaulting promoters to creditors and creating a modern regulatory framework where none existed before.
IndiaInsolvency/Bankruptcy/Re-Structuring
PSA
PSA
Article

Confidentiality: Enforceability Of Post-Employment Obligations

Indian courts have consistently upheld confidentiality obligations while striking down post-employment non-compete clauses, but the enforceability of these protections depends on precise contractual drafting and demonstrable evidence of misuse. This analysis examines landmark cases that define the boundaries between protectable trade secrets and an employee's general skills, revealing what businesses must establish to secure legal protection when confidential information is compromised.
IndiaEmployment and HR
PSA
PSA
Article

Intermediaries: A New Playbook Beyond Passive Compliance

Intermediary liability in India is governed by section 79 of the Information Technology Act (“IT Act”).This section provides safe harbour protection to intermediaries for third-party information, subject to compliance with due diligence obligations under the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (“IT Intermediary Rules”), particularly Part II, which governs intermediary conduct. On March 30, 2026, the Ministry of Electronics and Information Technology (“MeitY”) released draft amendments for public consultation.
IndiaMedia, Telecoms, IT, Entertainment
PSA
PSA