Independence of directors exists only in form, says SEBI chief Tuhin Kanta Pandey

Independence exists only in form and does not translate into actions in perspectives in Indian corporates, said SEBI chief Tuhin Kanta Pandey, while speaking at the CII Corporate Governance Summit on April 6, 2026, at Mumbai.

Further, speaking about the market regulators’ current stand on corporate disclosure, Mr. Pandey listed the measures to improve transparency. 

The comments assume significance as it comes amidst multiple alleged slippages in corporate governance across major listed companies in India. The silence of Reliance regarding the U.S. President Trump’s comments that the oil refiner was setting up shop in the U.S. and the abrupt resignation of Atanu Chakraborty as the chairperson of HDFC Bank were alleged to be major corporate governance slippages. 

Mr. Pandey spoke in detail about the need for governance in the age of artificial intelligence. 

Mr. Pandey underlined the importance of independent directors in ensuring ethical conduct of companies saying that “conversation must now move beyond who sits on the board to how effectively they are able to contribute once they are there.”

“Independent directors are there not only for compliance and pointing fingers at management but also for supporting and finding solutions through accountability. They need to bear this responsibility in mind,” he advised. 

Further, he said that today’s boardrooms have interdisciplinary problems and there is a need to fill skill gaps among independent directors. A lot of the changes that can make boardrooms proactive need to come from within the company than regulations.