Govt must ensure operational autonomy of PSEs: Sebi panel

In its report for overhaul of corporate governance norms for listed companies, the panel headed by eminent banker Uday Kotak said the government should establish a transparent mandate for PSEs and disclose their objectives and obligations. The objectives of the state-owned companies should be disclosed to shareholders on a regular basis so that investors can take informed investment decisions.

"The government should aim at ensuring independence of the PSEs from the administrative ministry to ensure speedy decision-making, functional and operational autonomy in pursuit of their stated objectives, for better commercial goals and to attract talent in a competitive market place," the report noted.

As a sustainable and optimal solution for minimising conflicts arising from the ownership and regulatory dichotomy in PSEs, the committee also recommended that the government should consider consolidating its "ownership and monitoring" of PSEs into independent holding entity structure by April 1, 2020.

Capital markets regulator Sebi (Securities and Exchange Board of India) has sought public comments till November 4 on the panel's recommendations, which run into 177 pages and covers a host of issues. The committee is of the view that these measures will significantly enhance value of the national assets and this should be done in a time-bound -manner.