5 hrs ago
SEBI May Keep Independent Director Workshops Voluntary Initially
SEBI is planning learning workshops for people who serve as independent directors on company boards.
These directors help oversee companies and are expected to understand rules and risks.
SEBI earlier considered making the workshops compulsory.
It now may begin with voluntary attendance.
Officials want directors to experience the benefits before deciding whether attendance should become mandatory.
The first workshop may take place after Diwali.
The sessions would use real cases and recent rule changes rather than formal tests.
The plan was developed after Atanu Chakraborty left HDFC Bank’s board and raised concerns about company practices.
SEBI is likely to make proposed workshops for independent directors voluntary at first.
The first workshop is now expected after Diwali, rather than in September-October.
BCAS, NISM and NSE are developing the programme, which remains under discussion.
The sessions are expected to use case studies and regulatory updates without formal exams or licensing.
SEBI began the capacity-building initiative after Atanu Chakraborty resigned from HDFC Bank’s board.
- Who
- SEBI, BCAS, NISM, NSE and independent company directors are involved; SEBI Chairman Tuhin Kanta Pandey has supported the initiative.
- What
- A proposed capacity-building workshop programme for independent directors may initially remain voluntary instead of mandatory.
- Where
- The programme is envisaged to be held at the NSE auditorium.
- When
- The article was published October 2, 2026; the first workshop is expected after Diwali.
- Why
- The initiative aims to provide continuous, structured learning on regulation, fiduciary duties, risk governance, technology and cyber risks.
Voluntary Capacity Building
Mandatory Continuing Education
Participation
Voluntary Capacity Building
SEBI may initially allow directors to choose whether to attend, allowing the programme to build participation and demonstrate its value.
Mandatory Continuing Education
The earlier proposal envisaged mandatory biannual training for independent directors.
Link to reappointment
Voluntary Capacity Building
The current approach would not initially make workshop attendance a condition for reappointment.
Mandatory Continuing Education
The earlier plan considered linking participation to reappointment after completion of a five-year tenure.
Implementation approach
Voluntary Capacity Building
Supporters of a gradual rollout say making the programme mandatory immediately could create opposition and unnecessary restrictions.
Mandatory Continuing Education
A compulsory framework could provide a more consistent system of continuing professional development, similar to requirements in some other professions.
Key facts
- Current proposal
- Workshops would initially be voluntary.
- Earlier proposal
- Biannual training could have been mandatory and linked to reappointment after a five-year tenure.
- Expected launch
- After Diwali, later than the previously expected September-October launch.
- Programme partners
- Bombay Chartered Accountants Society, National Institute of Securities Markets and National Stock Exchange.
- Format
- Practical learning using recent case studies and regulatory developments.
- Assessment
- The workshops are not expected to include a formal examination or licensing requirement.
- Trigger for initiative
- Atanu Chakraborty’s resignation as HDFC Bank chairman and independent director.
Quotes
A person involved in discussions with SEBI
A person familiar with discussions involving SEBI Chairman Tuhin Kanta Pandey
“The idea is to first conduct the programme, let independent directors see its value and then look at how it can be taken forward. Making it mandatory from the start can create opposition and unnecessary restrictions.”
thehindubusinessline.com
“The chairman was very positive about the initiative, but asked us to consult the NSE and work out the modalities.”
thehindubusinessline.com
Sources
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