Citing lack of powers in appointment of independent directors, ONGC seeks exemption from regulations

OIL AND Natural Gas Corporation Limited (ONGC) has urged the Securities and Exchange Board of India to exempt it from corporate governance rules pertaining to the appointment of independent directors to its board. According to an official, ONGC is one among the many public sector enterprises (PSEs) that had sought this exemption, as the power to appoint independent directors to PSEs rests with the government.

The Listing Obligations and Disclosure Requirements (LODR) require that any company without a non-executive chairman have a board of directors, comprising at least 50 per cent independent directors. At present, on ONGC’s board of 12 directors, only two are independent.