HDFC Bank: Sebi chief says independent directors must act responsibly

Days after the surprise resignation of HDFC Bank non-executive chairman Atanu Chakraborty, capital markets regulator Sebi’s chairman Tuhin Kanta Pandey on Monday said independent directors are expected to act responsibly and not make any insinuations.

In the comments that come in response to the executive chairman leaving the largest private sector lender, citing concerns on ethics and values, Pandey reminded of the responsibilities of independent directors like Chakraborty.

It can be noted that the resignation had led to a sharp correction in the HDFC Bank scrip, as investors became concerned.

The independent directors are required to be protectors of the interests of minority shareholders and should act “responsibly”, Pandey told reporters here.

“No one is expected to make insinuations without proper evidence and recordings,” Pandey told reporters in the customary post-board meet interaction.

Reading out from statutes, he said there is a system in place to deal with independent directors’ concerns, which includes the concerns being addressed to the board and minuted as well.

“We can’t keep things vague,” he added.

Sebi will be investigating all the aspects of the matter and look to bring out all the facts, he said, stressing that independent directors hold important positions.

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