Last Updated on March 24, 2026 12:20 am by INDIAN AWAAZ
AMN / Business Desk:
The head of India’s capital markets regulator has called on independent directors to act responsibly and avoid making unsupported claims, following the sudden resignation of Atanu Chakraborty, the part-time chairman and independent director of HDFC Bank.
Speaking after a board meeting of the Securities and Exchange Board of India (SEBI) on Monday, chairman Tuhin Kanta Pandey said independent directors play a critical role in safeguarding the interests of minority shareholders and must follow established procedures when raising concerns about company governance.
“No one is expected to make insinuations without proper evidence and records,” Pandey said, stressing that allegations should be supported by documented facts.
Resignation Sparks Market Concerns
Pandey’s remarks come days after Chakraborty stepped down from his position, citing “ethical differences” with the bank’s management. The abrupt exit triggered a sharp decline in the bank’s share price and prompted questions about corporate governance at one of India’s largest private lenders.
However, the Reserve Bank of India (RBI) subsequently stated that it had not found any material concerns regarding the bank’s functioning.
Clear Framework for Independent Directors
Pandey said there are well-defined rules governing the conduct of independent directors under the SEBI LODR Regulations and the Companies Act.
He explained that if independent directors have concerns about how a company is being run, they should first raise them with the board and ensure the issues are properly discussed.
“Where independent directors have concerns about the running of a company, they must ensure those issues are addressed by the board. If they are not resolved, the concerns should be recorded in the minutes,” he said.
Pandey added that issues relating to unethical conduct, suspected fraud or violations of the company’s code of conduct must be formally documented to ensure transparency and accountability.
“We can’t keep things vague,” he said.
Regulatory Review Possible
When asked whether SEBI would examine the matters mentioned in Chakraborty’s resignation letter, Pandey declined to comment publicly but noted that regulatory obligations would apply wherever necessary.
He also pointed out that the banking regulator, the Reserve Bank of India, had already taken note of the developments and continues to closely supervise the sector.
“The primary regulator has taken note and taken due decisions,” Pandey said, highlighting the RBI’s role in monitoring the functioning of banks.
The episode has once again brought the spotlight on corporate governance standards in India’s banking sector, particularly the responsibilities and conduct expected from independent directors.