No exceptions: Listed PSUs must match private firms in corporate governance

Hard deadlines should be set for compliance with these minimal standards of governance

At a recent meeting with chief executives of public sector undertakings (PSUs), Securities and Exchange Board of India (Sebi) Chairman Ajay Tyagi made several pertinent points about corporate governance. Mr Tyagi’s central message was that PSUs are not held to the same standards as firms in the private sector. His observation comes at a time when listed PSUs are fast approaching an August 21 deadline by when they are required to ensure public shareholding of at least 25 per cent. However, many PSUs have failed to sell off stakes as required and it will be impossible for them to adhere