This is the first study on Board Skill Disclosures and Practices in India, which has been jointly undertaken by NSE and IiAS (along with IiAS Research Foundation). This study covers constituents of the Nifty 50 and Nifty Midcap 50 indices. These companies are now required to disclose the domain knowledge that individual directors possess.
The report outlines the disclosures made by these companies in their FY20 annual reports. SEBI has often used disclosure as a form of enforcement. In mandating the disclosure, we believe SEBI has compelled companies to objectively articulate the current set of skills possessed by directors. In doing so, we expect boards will think about skills gaps and make that a central element of director (re-)appointments.
The skill sets required by the board must be seen in the context of where the business is currently and where it is heading. Skill matrices need to be defined to navigate successfully through this changing landscape, addressing changing market conditions, be it on account of new threats, global trade wars or the current pandemic.
IiAS report, 'Board Skills in India - Disclosures and Practices 2019-20' can be accessed by clicking this link