As the department of company affairs works on a new set of laws for independent directors, the government has not appointed any to the board of the Life Insurance Corporation of India, which manages around Rs 250,000 crore (Rs 2500 billion) funds.

The term of the last set of directors expired in February 2003, and the nine posts have been lying vacant since. Of the remaining seven directors, five are ex officio, they are acting in addition to their main jobs.

Finance ministry officials said 20 names had been selected, but were yet to be cleared. "The board has been meeting regularly to decide on the issue," an official said.

Besides LIC Chairman S B Mathur, the board comprises Managing Directors R K Vashistha and R M Bharadwaj, IDBI Chairman P P Vora, UTI Chairman M Damodaran, Banking and Insurance Secretary Vineeta Rai and GIC Chairman P C Ghosh.

The LIC Act, 1956, provides for the appointment of a maximum of 16 directors. Independent directors have been appointed from various sectors and regions.

The delay of over two months in clearing the names for the LIC board comes against the backdrop of the government asking state-owned banks and insurance companies to improve their performance and be managed by their boards.

Several appointments to the boards of general insurance companies were made in the past few months, after vacancies were left lying for a while.

The finance ministry has often delayed appointments, not just at the board level, but also in regard to chairmen of banks, insurance companies and financial institutions.

Allahabad Bank, the Small Industries Development Bank of India and the Industrial Investment Bank of India are without full-time heads.

Some more bank chiefs are slated to exit in 2003, including Vora and IFCI chief V P Singh in September. However, the government is yet to initiate the process of appointing their successors.