First thing to understand: being an independent director is a part time gig. You don’t get a salary, you get sitting fees for attending meetings.
The number is fast increasing given explosive growth in IPOs. This number will multiply more than 3x in the next 10 years thanks to India’s scorching fast economic growth and booming capital markets – as market capitalisation will triple.
If a company appoints an unknown person as Independent Director, whose personal brand is not discoverable, the market assumes that it is a person who is not reliable and might be close to the promoters and appointed for that reason. As a result, the stock price can be affected.
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