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Sebi seeks consensus on corporate governance norms

BS Corporate Bureau in Mumbai

The Securities and Exchange Board of India has sought a consensus among top corporates on refining the existing corporate governance norms.

At the fourth round table on corporate governance, G N Bajpai, chairman, Sebi, said: "Though there has been a consensus on wealth creation and management, wealth sharing is a contentious issue among top corporates. We are planning to reach all corporates on refining the existing guidelines."

As part of the action plan, Sebi has convened a meeting with the Federation of Indian Chambers of Commerce and Industry some time in December.

"We have already held discussions with a number of industry representatives on this issue. Now the turn is to meet with companies to seek consensus," he added.

At a meeting, Crisil and Icra, leading rating agencies which have been mandated to frame guidelines on corporate governance ratings, are expected to present papers on governance ratings. Rating agencies have been appointed to bring instruments for the ratings.

"We need to assess the impact of the existing corporate governance norms, while re-engineering the process. We require a philosophy whereby everyone should be able to assess transparency, sharing and accountability," Bajpai added.

He said India's efforts in corporate governance are well accepted worldwide and it could well become a benchmark for everyone. Disclosures here have already helped in preventing people from indulging in insider trading.

At present, Sebi has a committee chaired by N R Narayana Murthy, chairman and chief mentor of Infosys Technologies, to look at the aspects of corporate governance in India in line with global standards.

This follows the implementation of the recommendations of the Kumar Mangalam Birla committee.

The market regulator's focus has been on establishing an appropriate, transparent and effective regulatory regime in which all stakeholders have confidence.

It will ensure that corporates and their senior management understand and meet their regulatory obligations.

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