The Need for a New Perspective on Independent Directors

Sebi chairman Tuhin Kanta Pandey emphasized the importance of redefining the role of independent directors during his address at the Institute of Directors' 35th Annual Directors Conclave. He advocated for viewing them as "stewards of accountability" rather than honorary appointees.

Key Changes Required for Effective Governance

Pandey highlighted three essential changes: the selection process of independent directors, the need for ongoing orientation, and ensuring psychological safety. He urged companies to diversify their selection beyond familiar networks to include younger professionals and voices from different sectors.

The Importance of Psychological Safety and Diverse Views

"A board that never disagrees is not aligned, it's asleep," Pandey remarked. He stressed that divergent views, when based on purpose and mutual respect, can lead to stronger decision-making and uncover blind spots in corporate governance.

Looking Ahead: The Boardroom of the Future

The Sebi chief envisioned a future boardroom that acts as a learning organization, focused on creating long-term stakeholder trust and addressing uncomfortable questions to uphold the integrity of the institution.