The FPO has been deferred twice as the company did not have adequate number of independent directors on its board to meet the market regulator SEBI's listing norm. ONGC has six functional directors, chairman and two government-appointed nominee directors, taking the total strength of functional/promoter directors to nine.
However, it currently has five independent directors and appointment of three directors would help ONGC meet Sebi norm. Former RBI Deputy Governor Usha Thorat and former Finance Secretary Arun Ramanathan and Deepak Nayyar, ex-vice chancellor of the Delhi University, are being appointed as independent or non-executive directors on the ONGC Board.
Commenting on the issue, ONGC official said, "As per the scheduled drawn by the Department of Disinvestment in the Ministry of Finance , ONGC will file red herring prospectus (RHP) for the public offering around June 15," and added "Roadshows to promote the FPO would begin soon after."