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Business trends

Exodus of outside directors in India sparks oversight fears

Risk of fines and jail has talent shunning listed businesses

More than 1,300 outside directors left their positions in 2019, raising concerns about weakening corporate governance at India's listed companies.   © Reuters

NEW DELHI -- A shortage of independent board directors in India is raising concerns about a lack of oversight and transparency at listed companies in Asia's third-largest economy.

Spooked by new laws and recent court rulings that have seen independent directors receive severe fines or even jail sentences, existing directors are increasingly quitting and would-be directors are seeking opportunities elsewhere.

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