How to improve corporate governance
SEBI must have a set of parameters to evaluate excellence in corporate governance istock - istock
SEBI must have a set of parameters to evaluate excellence in corporate governance istock - istock×
Rather than introduce more regulations, SEBI must tweak the norms depending on a company’s track record
Corporate governance, as a topic, gained importance over time and after every major scam, either in the stock market or companies with fraudulent intent/management. A paradigm shift on reporting requirements happened after SEBI accepted and implemented the Narayana Murthy Committee recommendations in 2004. There was a sea change in corporate governance requirements with respect to board, audit committee, shareholders disclosures and CEO/CFO certification on internal controls, and the reporting standards were significantly elevated.