Speaking at an industry forum, Pandey said the regulator will work on a joint initiative aimed at strengthening the capabilities of independent directors at scale, with the objective of enhancing overall corporate governance standards.
“Sebi will seek to embark on a joint initiative for capacity building of independent directors at scale with a view to further improve corporate governance,” Pandey said while speaking at a CII event.
Pandey revealed the plan at a time when Indian markets are navigating heightened global uncertainties and increasing investor participation, placing greater responsibility on boards.
“As we look ahead, our objective has been and will continue to be to create a governance framework that is robust enough to protect investor interests, flexible enough to enable business, and adaptive enough to respond to changing realities,” the Sebi chief said, highlighting that the effectiveness of governance “ultimately” depends on how the frameworks are internalised and implemented within organisations.
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“If the first phase of governance reform was about building structures, and the second phase was about strengthening processes, then the next phase must be about building capability,” Pandey said.
Pandey said the regulator has built a robust skeletal structure of governance, but added that the question now is how strong the system is that enables the structure to function effectively. Pandey highlighted that the next phase of governance reform will not be about adding more rules, but about improving the quality of engagement within boardrooms. Independent directors, who are expected to safeguard minority shareholder interests and provide oversight, often operate with limited visibility and rely heavily on management inputs, making their role both critical and complex.
To address this, Sebi’s proposed initiative will focus on continuous and structured learning rather than one-time training. Key areas include domain-specific orientation, peer learning platforms, ongoing updates on emerging risks such as technology and sustainability, and the creation of knowledge networks to share best practices.
The regulator also underscored the need for boards to move beyond compliance-driven discussions to more value-oriented deliberations, including deeper analysis of risks, strategy and long-term sustainability.
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