Voices of Change 7: Rajesh Thakkar, Certified Independent Director & Mentor
Rajesh Thakkar is an Independent Director, Mentor, Business & Life Coach, based in Mumbai
Our team spoke to him recently on corporate governance and independent directorship. Here are the excerpts from the interview:-
- You have been a board member / independent director. How can independent directors improve corporate governance practices? Please share an example if possible
Why should we talk about Corporate Governance only? IDs have vast experience and expertise in many areas. Organizations can take advantage of it.
Earlier I worked as an Independent Director with an NBFC and now working as an Independent Director with an ESG Rating company as well. I have observed that Independent Directors can contribute in a huge way but, the companies are looking for regulatory purposes only and not discussing many things with the Independent Directors due to any reasons.
Independent Directors can improve Corporate Governance in many ways in the Formation of various policies, Being members of various committees, they can study internal processes and practices which require improvement(if the ID is well Qualified in QMS and a member of the QMS Committee). Many IDs are up to date on the latest regulatory changes as well, which may be useful to companies in deciding strategies for future growth.
Example: 1: When I was working with NBFC, we decided to go ahead with Alternative Investment Products and as I was aware of Alternate Investment Products & Regulations, I was able to suggest many things to the Chairman of NBFC. As I am aware of the latest technology, we even discussed how to design and launch our website & app for the fastest distribution of products.
Example 2: Recently I have onboarded one ESG Rating company and its parent company has done a few product level ratings as well. As per SEBI Guidelines, companies can’t do Ratings. I suggested to the company board that we should not write it while applying for ESG Rating Company as it is done by the parent company and not by the applicant company but my suggestion was not accepted and they mentioned it in the application. SEBI Raised the same concern and asked for clarification that without getting a license how Parent Company do Ratings?.
In the same company, I suggested ESG Rating Methodology as per SEBI Guidelines.
2) You are a senior leader with expertise in finance and compliance. Please share your contributions as a senior leader/board member in the BFSI sector.
I have spent almost 30 years in the BFSI Domain and suggested many changes to IRDAI.
Example 1: In the early years of privatization and launch of ULIP Products, the previous day NAV was applicable even if I invest today. Because of that If yesterday’s market was down and today’s market is up then I can make sure profit. I asked IRDAI to change the rules and now it is changed.
Example-2: Earlier, the online facility of premium payment was not available even though the internet was available. I requested LIC and IRDAI both to allow new technological changes and allow the public to pay online. Now it’s common.
Even for getting NEW Business, we decided to do Digitalization of process. I have managed Digitalization in LIC.
Example-3: For SAKAL Media Associated company known as SIMACES Insurance Broker Pvt Ltd(SAKAL MONEY), being a Key Management Person, I have received a Broking Licence for the company and created a Distribution Channel for the company as well. It’s a classic case of Compliance as well as because of the submission of various reports, the company was able to get a license from the IRDAI.
3) How can overall board governance and board leadership be enhanced in the Indian corporate world?
It’s all about acceptance of ethical and genuine practices which our culture has been advising since the time of RAMAYANA.
Focus on Quality, Values, and how it impacts internal & external stakeholders.
By creating and implementing ethical & genuine practices & policies, we can enhance the Indian Corporate World. Our Value System is rich, we just need to implement it again. Profit is important but How & what type of impact we are creating is more important. It may be through adopting value systems, technology, innovation of new products, better corporate governance, Rules & Regulations of various authorities, etc.
I suggested to the Government authorities that every STARTUP, which is getting Government FUNDs or Benefits, must have an Independent Director appointed by the Government so that the STARTUP can grow in a very good environment with the help of a skilled Independent Director.
I suggested to IICA as well to start programs on STARTUP nurturing and I am happy to inform you that Dr. Niraj Gupta has accepted it and started it as well. Because of my successful strategy, I helped my last company in getting the National Startup Award as well.
Ultimately, the world is our family. Vasudhaiv Kutumbakam.
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Profile
Rajesh Thakkar is an astute professional having 25+ years of experience in Business Development, Administration, Operation Management, Financial Management, and Compliance Management for IRDAI, with India’s leading companies in various capacities.
He is a qualified Independent Director, and a Certified ESG and Business Administration Professional. He holds an MBA-Finance, is an Associate from the Insurance Institute of India, Lean Six Sigma Green belt, and has an Honours Diploma in Information and System Management.
