LIC against Sebi's decision on whole-time directors
Mumbai: Opposing the move by Securities and Exchange Board of India (Sebi) to treat nominee directors of the companies as whole-time directors, Life Insurance Corporation of India said the nominee directors appointed by the financial institutions cannot be treated as whole-time directors since the nomination is based on the financial investments or equity stake in the companies and the nominee directors are not involved in the day-to-day operations of the company.

The Sebi is in the process of amending clause 49 of the SEBI Act to ensure better corporate governance norms.

LIC also said that the Sebi should lower the age limit for the company directors to prevent the same directors from being appointed repeatedly in contravention of global corporate governance norms.

The RBI had also suggested that since the nominee directors in listed public sector banks are appointed by the government, they cannot be treated at par with the corporate whole-time directors.
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