Mercer Mettl develops database of Indian independent directors

In response to tightening corporate governance expectations across the Indian business environment, the Indian Institute of Corporate Affairs has appointed advisory firm Mercer Mettl to develop a comprehensive database of independent directors across India for assessment purposes. 

The Independent Directors’ Databank, as the new platform is called, requires all independent directors in the country to register before March this year, giving rise to an extensive database. Directors who register will also have to undergo an online proficiency test for evaluations.

The move is another manifestation of the recent focus on corporate governance practices across India. The government has been partly responsible for this focus, with increased activity from the Ministry of Corporate Affairs making clear the need to maintain strict standards.

The business environment has also recognised the need for better corporate governance, a large part of which relies on the structure of the board. Having more independent directors is among the central strategies to ensure clean corporate governance practices, and the new databank is a step in this direction.

Companies looking to appoint independent directors can now browse the Independent Directors’ Databank, where candidates from across the country are present along with their level of proficiency. Mercer Mettl will administer the platform, in addition to managing the evaluations.

Using its own self-developed Credibility Index, the rapidly expanding firm will not only administer the initial proficiency test, but it will also then bestow certification on certain independent directors based on results and reports. The new system acts as a check and a filter at a time of increasing demand for independent directors.

Commenting on the new platform, Mercer Mettl CEO Siddhartha Gupta said, “We are excited and proud to be a government partner in its endeavor to bring quality building home. The Independent Directors' Databank is a first-of-its-kind initiative by the government and will act as a repository of all existing and aspiring independent directors.”