NEW DELHI: Government plans to scale down its representatives on the board of Oil and Natural Gas Corporation before the December 31 deadline set by Sebi to meet clause 49 listing requirement, said petroleum secretary SC Tripathi.

Clause 49 needs that 50 percent of a company's board should represent independent directors. Violation of the clause, which will come into effect from December 2005, leads to delisting of a company. Petroleum ministry appointed two more government directors on the ONGC board, taking the number of government directors, who Sebi treats as executive or functional directors, to 5.

After considering 6 functional directors, the ONGC board of 14 members, only has space for 3 independent directors.

"We have time till December. We may reduce the number of government directors on ONGC board," Tripathi said. Besides, names of 4-5 independent directors have been cleared for appointment on ONGC board, he said.

Stating that the ministry had petitioned Sebi to treat government directors as independent ones, he said if Sebi does not subscribe to the view "some government director position may be reduced."

ONGC CMD Subir Raha has written to Tripathi for "increasing number of independent directors or to reduce government nominee directors."