OIL share offer falters on board composition

The maiden share issue of Oil India Ltd (OIL), the country's second largest oil and gas exploration company, is likely to be delayed beyond February as the company has not been able to appoint the requisite number of independent directors on its board.

The Clause 49 of the listing agreement requires that a company headed by an executive chairman should have a board on which at least half the number of directors are independent.

"OIL needs seven independent directors to be Clause 49-compliant,. They have sent only three names to the government," said an oil ministry official.

The petroleum ministry has not yet cleared the three names. The Securities and Exchange Board of India does not approve maiden public offers till the Clause 49 norms are met.