Wednesday, October 5 2005 15:57 Hrs (IST) - World Time -

New Delhi: Amidst the controversy over attempts to nominate politicians as independent directors on the boards of state-owned companies, the Department of Public Enterprises has decided to draw up a panel of candidates who can be appointed as non-functional directors on the basis of March 2004 guidelines.

"The DPE has invited bio-data of persons who wish to serve as independent directors on the board of state-owned companies and fulfill the criteria laid down in guidelines issued in March 2004," told sources.

The guidelines issued in March 2004 has said senior bureaucrats - having served not less than 10 years as Joint Secretary - or university professors, technocrats, institute heads and corporate leaders, could be appointed as independent directors of PSU Boards.

The minimum educational qualification for non-official directors is graduate degree and they should be between 45-65 years of age.

The department has decided to expedite the process of formation of the panel from which independent directors can be selected as the Securities and Exchange Board of India deadline for filling half of the positions on the boards of listed companies is drawing near.

At present there are close to 47 listed PSUs, including 18 banks.

According to estimates for the 28 PSUs, more than 200 independent directors would be required. If the government also decides to put independent directors on the boards of unlisted central PSUs, which are around 190, the number would go up substantially.