India's most profitable business entity, Oil and Natural Gas Corporation (ONGC) will soon be no more in Navaratna team. This is because of company's plans to shed shares of Rs. 11,500 crore to the market. This share sale is scheduled in next month, leading company to loss of status for the Navaratna Company.

Going ahead towards implementation of plans, Government has called of both of its directors appointed on the ONGC Board. This withdrawal is to meet regulator SEBI's policy. According to this policy, ONGC requires to have equal number of functional and independent directors to allow Rs. 11,500 crore further public offering scheduled on April, 5.

Result of ONGC not having a Navaratna status will leave special privileges it enjoyed. These includes autonomy given to its directors to make final decision on investment of its projects and also spend Rs. 1000 crore in a joint venture.

According to the norms, ONGC can enjoy these rights only when it has government appointed directors on its board. But as these director posts are withdrawn, now ONGC will need to ask for a nod from Public Investment Board (PIB) for every investment exceeding Rs. 1000 crore. Currently ONGC has 6 functional directors and a chairman. Two are government appointed nominee directors, making the number of functional directors to be 9. Currently ONGC has 4 independent directors, so soon it can appoint 5 more independent directors to meet norms.