Governance committee bats for more autonomy at PSUs

Uday Kotak committee was of the view that enhancing the autonomy would strengthen how the market perceives these entities

The Uday Kotak committee on corporate governance has suggested the government should look at creating an independent shareholding structure for listed public sector undertakings (PSU) and reduce dependency on administrative ministries.  

According to the committee, such a step would be in the best interests of all the shareholders as it would enhance the valuations. It would also help address some of the conflicts of interest situations as the regulator and owner of PSUs are the same entities.

While the committee didn’t make any specific proposals, it suggested broad points for the government to assess.

“The government should