The non-official Directors are appointed on the Boards of Central Public Sector Enterprises (CPSEs) by the concerned administrative Ministries on the basis of recommendations of Search Committee after obtaining approval of the competent authority. Similarly, Government has constituted Search Committee for recommending persons to be appointed as non-official Directors in Public Sector Banks (PSBs).

The Search Committee recommended names for filling up 103, 144 and 233 positions of non-official Directors on the Boards of CPSEs during the years 2014, 2015 and 2016 respectively.

There are 360 and 104 vacant positions of non-official Directors in the CPSEs and PSBs respectively.

In case of CPSEs, the Department of Public Enterprises requests the administrative Ministries to furnish proposals for filling up vacant positions of non-official Directors on the Boards of CPSEs under their respective administrative jurisdiction. In case of PSBs, the Search Committee meetings are convened from time to time for recommending persons to be appointed as a non-official Directors in PSBs.

This was stated by Shri Arjun Ram Meghwal, Minister of State for Corporate Affairs in written reply to a question in Lok Sabha.

Appointment of non-official directors: Search Committee recommendations guide selections with administrative ministry approval and vacancy filling. Appointment of non-official Directors to CPSE and PSB boards is driven by Search Committee recommendations; CPSE appointments proceed after administrative Ministries submit proposals and competent authority approval, while PSB appointments follow periodic Search Committee recommendations to fill vacancies.