New Delhi, Jan. 10: The Securities & Exchange Board of India (Sebi) today warned that strong punitive action could be taken against listed companies that failed to abide by the December 31, 2005 deadline for appointing independent directors as mandated by Clause 49 of the listing norms.

Sebi chairman M. Damodaran said the regulator has sought information from stock exchanges and even public sector companies, if found to be violating the Clause 49 norms, would not be spared.

“I am not going to give anyone any more time (to comply with the listing norm),” Damodaran told reporters after a conference of Standing Committee of Public Enterprises (Scope) here.

Clause 49 of the listing agreement stipulates that by December 31, 2005 companies listed on the domestic bourses must have at least 50 per cent independent directors on their boards. The move aims at restricting the promoters of companies to push through “pliable” members, even though they may not be in the best interest of shareholders.

“It (compliance of Clause 49) will be known within the next 10 days,” Damodaran said.

The Sebi chief did not agree with the opinion that companies were not given enough time to appoint independent directors.

“The Kumarmangalam Birla committee on corporate governance had submitted its report in 1999. This is 2006. Is it not a long time? We had set the deadline for March 31 and then extended it by another nine months,” he pointed out.

However, what penalty or punishment Sebi is contemplating against the companies not complying with the norms is not known.

Asked whether Sebi would look into the quality of independent directors, Damodaran said, “It was for the board to decide.” He was, however, not averse to appointing politicians as board members so long as they had professional background.