PSU Performance and Reforms — Policy Reforms

Entry	Year	Description	Impact
Companies Act 2013	2013	Introduced comprehensive corporate governance reforms for PSUs including mandatory board composition with independent directors, audit committee requirements, CSR spending obligations (2% of average net profits), and enhanced disclosure norms. The Act brought PSUs under the same regulatory framework as private companies for governance standards.	Significantly improved PSU governance standards, enhanced transparency and accountability, and created level playing field with private sector companies in corporate governance practices.
Insolvency and Bankruptcy Code 2016	2016	Extended insolvency proceedings to PSUs, enabling time-bound resolution of stressed assets and providing legal framework for PSU restructuring. The Code allows creditors to initiate insolvency proceedings against PSUs, subject to government approval for strategic sectors.	Provided legal mechanism for PSU debt resolution, enhanced creditor rights, and created market-based restructuring options for financially distressed PSUs.