Board Composition in 2025: Why Indian Listed Companies Are Scrambling for Independent Directors

Independent director appointments at NSE-listed companies surged by 28% in the first half of 2025, according to CXO India Insights analysis of regulatory filings. The spike is not accidental. A combination of SEBI enforcement actions, shareholder activism from institutional investors, and the post-pandemic reassessment of governance standards has made board composition a boardroom priority in its own right. What has changed most dramatically is the profile of candidates being sought. The era of the retired bureaucrat or the former banker collecting four or five independent directorships is giving way to a more demanding standard. Audit committee chairs are now expected to have working knowledge of Ind AS 116 and cybersecurity risk frameworks. Nomination and remuneration committee members face shareholder scrutiny over executive pay benchmarking in a way that was unimaginable five years ago. CXO India has observed a parallel rise in what insiders call "director readiness programmes" — structured preparation that helps senior executives transition into effective independent director roles. The best candidates arrive at their first board meeting with a command of the company's risk register, a clear view on related-party transaction policy, and the confidence to ask uncomfortable questions. The governance gap in Indian boardrooms is real, but the talent to fill it is finally beginning to emerge.