SEBI Chairperson Tuhin Kanta Pandey Highlights Role Of Independent Directors In Governance Process

The Securities and Exchange Board of India (SEBI) Chairperson Tuhin Kanta Pandey on Monday said Independent Directors must act with responsibility and avoid vague statements. The remarks follow the resignation of Atanu Chakraborty as Non-Executive Chairman of HDFC Bank before the end of his term.

The regulator said it will examine the circumstances leading to the exit. Chakraborty cited internal developments and practices that did not align with his values, but did not provide details. SEBI indicated that concerns of this nature should be recorded in board meeting minutes under listing and disclosure rules. Pandey said Independent Directors have defined authority to question management and must follow due process instead of making unverified claims. He added that they are required to protect minority shareholders’ interests.