Public sector undertakings have also to adhere to the norms of the Corporate Governance. What are the guidelines of corporate governance for public sector enterprises, 2010?

Department of Public Enterprises (DPE) is the nodal department for issuing the corporate governance guidelines for the Public Sector Enterprises for both at Centre and State level. Since Government is the major shareholder in Public Sector Undertakings (PSUs)/Central Public Sector Enterprises (CPSEs), it is responsible to set the high standard of governance to be followed by these public sector enterprises. To bring in more transparency and accountability in the functioning of CPSEs, the Government in 2007 introduced, for an experimental period of one year, the Guidelines on Corporate Governance for CPSEs. These Guidelines were of voluntary nature. Since the issue of these guidelines, the CPSEs have had the opportunity to implement them for the whole of the financial year 2008-09. These Guidelines have been modified and improved upon based on the experience gained during the experimental period of one year. The Government have felt the need for continuing the adoption of good Corporate Governance Guidelines by CPSEs for ensuring higher level of transparency and decided to make these Guidelines mandatory and applicable to all CPSES. Accordingly, revised Guidelines on Corporate Governance for Central Public Sector Enterprises was issued by Department of Public Enterprises (DPE) in 2010. Apart from these instructions of DPE, the CPSEs are governed by the Companies Act, 2013 and regulations of various authorities like Comptroller and Auditor General of India (C&AG), Central Vigilance Commission (CVC), Administrative Ministries, other nodal Ministries, etc. In case of Listed CPSEs the SEBI Regulations would also be applicable in addition to other applicable laws and DPE Guidelines. DPE guidelines on Corporate Governance provide following governance parameters: Board of Directors Audit Committee Remuneration Committee Subsidiary Companies Disclosures Report, Compliance and Schedule of Implementation