Indian promoters take back seat, prefer non-exec roles as scrutiny rises

Top firms asking professionals to run daily operations; experts say increased regulatory and shareholder scrutiny is making promoters give up their positions

Several Indian promoters are now quitting their executive positions in their companies to focus on non-executive roles. The latest to join the non-executive bandwagon is the Wadia group scion, Jeh Wadia who quit the position of MD in both Bombay Dyeing and Go Air.

Earlier, the promoters of Infosys, HCL Technologies, M&M, TVS Motor, Avenue Supermarts had  quit their executive roles in favour of non-executive ones. Legal experts say that though there is no legal requirement to quit executive positions by promoters, the increased regulatory and shareholder scrutiny is making promoters give up their positions.

The  market regulator, the Sebi