- SEBI chief urged independent directors to act responsibly without making baseless insinuations
- Atanu Chakraborty resigned as HDFC Bank chairman citing concerns on ethics and values
- His resignation caused a sharp stock correction in the largest private sector lender
Just a few days after the surprise resignation of HDFC Bank non-executive chairman Atanu Chakraborty, Securities and Exchnage Board of India Chairman Tuhin Kanta Pandey said independent directors are expected to act responsibly and not make any insinuations.
This was in response to the executive chairman leaving HDFC Bank, citing concerns on ethics and values, Pandey reminded of the responsibilities of independent directors like Chakraborty. It can be noted that the resignation had led to a sharp correction in the largest private sector lenders scrip, as investors became concerned.
The independent directors are required to be protectors of the interests of minority shareholders and should act "responsibly", Pandey told reporters here.
"No one is expected to make insinuations without proper evidence and recordings," Pandey told reporters in the customary post-board meet interaction.
ALSO READ: SEBI Approves Stricter Conflict Disclosure Norms For WTMs, Officials
Reading out from statutes, he said there is a system in place to deal with independent directors' concerns, which includes the concerns being addressed to the board and minuted as well.
"We can't keep things vague," he added.
SEBI will be investigating all the aspects of the matter and look to bring out all the facts, he said, stressing that independent directors hold important positions.
SEBI in its board meeting approved multiple changes. It also included a revised code of conduct to manage conflicts of interest for its Whole-Time Members (WTMs) and officials. The new framework aims to introduce stricter disclosure requirements, greater transparency, and technology-based monitoring of conflict of interest situations. It also includes periodic disclosure of financial and non-financial interests, stronger recusal rules, and better institutional oversight.
(With Inputs From PTI)
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