Corporate Governance Review Practice
The scope and significance of corporate governance in India increased
sizeably in the recent period, particularly following the financial sector
reforms. As Indian corporates are finding new space in domestic and
global markets for business growth, their interaction with the financial
markets and investing community too witnessed significant surge. In this
process, corporate governance came as an effective instrument for
companies to communicate with the various types of stakeholders in
general and investors in particular.
What began as an industry initiative of CII, corporate governance today
became an essential part of the culture that defines better run companies
and those held in esteem by the investors and stakeholders. As the rigour
of the regulation intensified, governance standards began to be codified
and formed an important part of the evaluation and assessment process.
Clause 49 of the Listing Agreement of the Stock Exchanges is the key
instrument that drives compliance of the corporate governance standards
and practices by companies.
Stock Exchanges and regulatory authorities which receive the compliance
reports of the companies regularly assess the record of performance in
this regard and take relevant actions. Securities and Exchange Board of
India sending notices to 20 companies amongst which there are five public
sector undertakings, is an instance of review processes following the
receipt of information and filing of reports on compliance of corporate
governance norms. Such measures will make companies more alert in
adhering to the stipulated norms and guidelines.
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Comments / Suggestions / Inputs may please be forwarded to:
The Executive Director
National Foundation for Corporate Governance
E-mail : firstname.lastname@example.org
Director (CII), NFCG
E-mail : email@example.com