The survey reviewed governance disclosures across major central public sector undertakings.
Several of India’s largest public sector utilities (PSUs) continue to run with gaps in board composition, evaluation and governance processes, according to a survey by Excellence Enablers.
The study found that 36 Maharatna and Navratna companies did not have the prescribed minimum number of independent directors in FY25. Board diversity also remained uneven, with 17 companies having no women directors on their boards, indicating ongoing gaps in compliance with governance norms.
Independent Director Shortfall
Independent directors are expected to play a key role in strengthening board oversight and protecting minority shareholder interests. A shortage of such directors can weaken supervision at large listed companies, particularly in public sector enterprises where government ownership is significant.
The report also showed shortcomings in board oversight practices. Only 13 companies conducted board evaluations in FY24 and FY25, and only one evaluated all required categories, including the board, individual directors, the chairperson, and board committees. Board evaluations are intended to assess performance and improve governance standards, but the survey suggests the practice is still not widely followed.
Whistleblower Mechanism Concerns
Whistleblower mechanisms, which are considered an important governance safeguard, also appeared largely inactive. Of the 31 companies that disclosed complaint data, 28 reported zero whistleblower complaints in FY25. While this may reflect fewer internal issues, the report suggests that companies should ensure their reporting systems are credible and accessible.
The report also flagged participation and accountability at the board level. “It is a legitimate expectation that every Director, executive or non-executive, attends every meeting of the Board of Directors,” it said, stressing the need for active engagement by board members.
Audit Panel Oversight
Audit oversight may also need strengthening at large state-run enterprises. “The regulatory prescription that the Audit Committee shall meet at least four times in a year is clearly inadequate,” the report said, arguing that companies of such scale and complexity require deeper scrutiny of financial and risk matters.
The survey reviewed governance disclosures and board practices across Maharatna and Navratna central public sector enterprises, which include some of the country’s largest companies across sectors such as energy, mining, infrastructure and finance.
Published on March 2, 2026