India Inc stares at exodus of independent directors as new norms bite

Gap between demand and supply of board personnel could be widening

India Inc may be staring at an exodus of independent directors this financial year, amid the changing regulatory landscape.

In the past year, more than 1,000 independent directors have quit, spooked by high-profile corporate frauds, accounting discrepancies, and application of global anti-corruption laws. In the past two months alone, about 400 independent directors have quit as against 200 appointed, hinting at a likely widening gap between demand and supply that might play out in the coming months.

About 1,500 independent directors had signed up for five-year terms in 2014-15, which are up for renewal this year. Independent directors can get